Unlocking the Future: C3.ai Stock Analysis & Price Prediction

Unlocking the Future: C3.ai Stock Analysis & Price Prediction

Table of Contents

1. Introduction
2. Trading Platforms - Using Mumu
3. Upstart: Continues its Path to the Upside
   • Upstart's Historical High
   • Rally in the Artificial Intelligence and Semiconductor Sector
   • Potential Drawback in the Sector
4. Palantir: Lagging Behind but Offering Stability
   • Short Selling Ratio
   • Heavy Volume and Short Cover Waves
   • Share Float Analysis
5. C3ai: Retail Investor Driven and Potential for Stock Split
   • Block Orders and Retail Investor Psychology
   • Short Interest Spike and Volume Increase
   • Expectations and Closing Above $50 Levels
6. Conclusion

Upstart: Continues its Path to the Upside

In today's video, we'll start by discussing Upstart, a stock that has been continuing its upward trajectory. As Mentioned in yesterday's video, Upstart has been heading towards the $50 level, and it seems that this target is within reach. With a historical high of $401 at the end of 2021, which coincided with the beginning of the year-long bear market, Upstart is now showing signs of breaking free from that hold. The rally in the artificial intelligence (AI) and semiconductor sector, which started in May and bled into June, has contributed to Upstart's surge. However, it is worth noting that a drawback in the sector is expected next week, presenting a potential opportunity for those who have not yet entered the AI play.

Taking a closer look at Upstart's price action, we can see that it spent most of the trading day in the upper range indicated by the Bollinger indicator on the 15-minute Chart. The stock also appeared to be overbought during most of the trading day. However, the strong demand and rise in the AI and GPT (Generative Pre-trained Transformer) sector can sometimes lead stocks to trade beyond their fundamentals. With a Current share price of around $50 and a market capitalization slightly under $5 billion, Upstart may not seem to justify the price. However, it is worth considering that Upstart is one of the stocks that could potentially reach market caps as high as $20 billion during this surge. This would equate to a share price beyond $200. To accommodate retail investors who prefer lower share prices, it is possible that Upstart may initiate a stock split before the share price reaches such heights.

It is important to note the significant interest in AI and technology software among major retail and Blue-chip companies. These companies heavily rely on these technologies, which explains the increased interest from both institutional and retail investors in the sector. In the case of Upstart, the stock is expected to reach and breach the $50 level within the next 30 trading days. However, a cooldown period is anticipated next week, which could bring the stock back towards the $32 level. Nonetheless, Upstart still holds a high chance of reaching $45 before that cooldown phase.

Palantir: Lagging Behind but Offering Stability

Another stock worth discussing is Palantir, which has been lagging behind in recent times. Despite heavy volume, with around 112 million shares being traded, Palantir has consistently seen an aggressive short selling ratio. This ratio has consistently hovered around 20%, compared to the 8% level that is typically considered aggressive. Consequently, short cover waves are likely to occur in Palantir. However, due to the higher share float of 1.77 billion, the magnitude of the short cover is not expected to be significant.

Analyzing Palantir's price action, we can observe a slight rally at the open, accompanied by a gap-up in the pre-market. Nonetheless, the stock cooled down quickly after the open. Palantir's short selling ratio and volume increase can be attributed to two main factors. Firstly, Palantir's short interest has seen dramatic increases, starting from 7.27 in January and peaking at 28.78 in June. This represents a nearly 400% increase since the beginning of the year. Secondly, Palantir is predominantly driven by retail investors and does not have a strong institutional presence. This contrasts with stocks like Upstart, which do have institutional investors. In order to keep the stock on the radar of retail investors, Palantir will likely need to maintain a lower share price.

Considering the above factors, Palantir can be seen as a safer investment option compared to other stocks in the artificial intelligence sector. However, it is important to note that Palantir may not offer the same magnitude of returns as stocks like C3ai and Upstart. Ultimately, Palantir's future performance will depend on factors like short cover situations and overall market conditions.

C3ai: Retail Investor Driven and Potential for Stock Split

Moving on to C3ai, this stock stands out as my current favorite in the artificial intelligence sector. One key factor that draws me to C3ai is the presence of block orders and the underlying psychology of retail investors. Retail investors tend to acquire as many shares as possible due to psychological reasons, and they often shy away from stocks with high share prices. Recognizing this, C3ai may consider implementing a stock split to keep retail investors engaged and maintain its stock's appeal.

Looking at the short interest situation, C3ai has consistently seen numbers above the 8% threshold, indicating an aggressive short selling ratio. However, the short interest percentages in C3ai are not as high as in stocks like Palantir. Despite this, C3ai has seen a significant increase in short interest since the beginning of the year. Starting at 7.27, the short interest surged to 28.37, approaching a 400% increase. This increase can be attributed to the fact that C3ai is currently driven more by retail investors than institutional investors.

Considering the factors mentioned above, C3ai holds great potential for short cover situations and future growth. It is important to note that Mumu is currently offering one guaranteed free share of C3ai for those who sign up using my sponsored link. This further emphasizes the retail investor-driven nature of C3ai.

To conclude, C3ai is likely to reach and bridge the $50 level within the week. However, whether the stock can sustain this level until the end of the week remains uncertain. If C3ai manages to close above $50, it could potentially lead to an even larger drawback in the subsequent week. Therefore, it is crucial for current C3ai holders to stay updated on the stock's performance.

Conclusion

In conclusion, this video provided updates on Upstart, Palantir, and C3ai. Upstart is showing continued upward movement, but a potential drawback in the sector may provide an opportunity for new investors. Palantir, despite lagging behind, offers stability and is expected to experience short cover waves. Lastly, C3ai stands out as my favorite in the artificial intelligence sector, primarily driven by retail investors. The presence of block orders and potential for a stock split make C3ai an intriguing investment option. Overall, it is crucial to stay informed about these stocks and monitor their performance closely.

Highlights

• Upstart continues its upward path, aiming towards the $50 level.
• Palantir lags behind but offers stability with a high short selling ratio.
• C3ai is my current favorite in the AI sector, driven by retail investors and potentially heading for a stock split.
• Upstart may experience a drawback next week, presenting an opportunity for new investors.
• Short cover waves are likely to happen in Palantir due to its heavy volume and aggressive short selling ratio.
• C3ai's block orders and retail investor psychology make it an appealing investment option.
• Expectations for C3ai include reaching and breaching $50 levels, potentially leading to a significant drawback in the subsequent week.

FAQ

Q: How long does the expected drawback in the AI sector last? A: The expected drawback in the AI sector is anticipated to occur next week.

Q: What is the significance of a stock split for retail investors? A: A stock split does not affect the value of an investor's position but makes the stock more affordable for retail investors.

Q: What is the short selling ratio of Palantir? A: Palantir consistently has an aggressive short selling ratio around 20%.

Q: How does short interest in C3ai compare to Palantir? A: C3ai has a higher short interest increase, approaching a 400% surge since the beginning of the year.

Q: What are the potential drawbacks of Upstart and C3ai? A: Upstart may experience a cooldown period next week, while C3ai could potentially face a significant drawback if it closes above $50 levels.