I’ve got your answer here – December 9, 2024
Good evening, Dan Fitzpatrick here at StockMarketMentor.com. I want to look at C3.ai ( NYSE: AI ). And why is that? Well, because everybody else is too.
If we just look at the regular hours we can see this thing closed at 41.68, They reported earnings after the bell, and this is what happened when they did. Boom, the stock’s up quite a bit, $4.00, 10 percent or so. And so, why is that, and what the heck do we do? They had a 29 percent jump in revenue, they lost money, six cents a share.
The market thought they would lose 16 a share. I don’t like to lose money but I’d rather lose six cents than 16, so the market took that as a good thing. Also, you know Microsoft ( NASDAQ: MSFT ) has a play here. They’re saying that with this partnership with Microsoft ( NASDAQ: MSFT ) things are going a lot smoother than you might otherwise imagine.
The bottom line is they’re ramping, firing on all cylinders. Let’s go to the weekly chart, you can see this thing has been in a range for over a year. It’s been in a range for a while, and then back here in late December, we get this big ramp here, boom. And so now what are you going to do?
I wouldn’t be buying this thing first thing in the morning. You can see what happened when the stock jumped up. Somebody bought up at the top and now they’re going, I think I’m losing 8 percent, I’ve got to get out of here, and so they’re selling. You can feel it, right? Look at this, over 118,000 shares have been traded in the last 5 minutes.
A massive amount of selling is going on right now after a big bunch of buying. So who knows what’s going to happen tomorrow morning? You’re absolutely going to see the penguins on parade. That’s all the analysts coming out to upgrade the stock. They’ll all follow each other. They’ll be raising the stock price.
However, if you look at the 50-day moving average and where the stock is now, it’s up 55 percent above that level. At one point after hours, it was up 70 percent. That’s just stupid high. I think maybe it was up to that level here, 87 percent. You can see what happened after that. So as I look at this, I like AI ( NYSE: AI ), and I like this company. I like the stock but just not right here.
So what my suggestion would be is, if I’m long this stock, I’m not long this stock, I would have sold into this strength. If I’m still long this stock, I wouldn’t be long this stock in a minute. I would just be selling the stocks, taking the money, and running, thank you very much, sir, may I have another?
It’s up 11 percent today, and so wait for the stock to come back, maybe to the 8-day EMA. That will probably take a day or two, but just give the stock some room to breathe before you jump right in. Look, this is a really, really obvious move, you’re not getting in early if you’re buying this stock.
And you’re definitely not buying this stock here because you know the stock’s going to rally up here, and you don’t want to miss the boat. No, that’s not going to happen at all. You’re going to see this stock find some kind of a respite. You’re going to see it do some kind of rest somewhere in this area. I don’t know where, but I seriously doubt it’s going to blow out of this box. So give this some time and let’s go make some money.
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