Shares of artificial intelligence (AI) software company C3.ai (NYSE:AI) fell 14.4% in the morning session after short seller, Sahm Adrangi of Kerrisdale Capital, sent a letter to Deloitte & Touche, conveying worries about alleged accounting problems at the firm.
What is the market telling us:
C3.ai's shares are very volatile and over the last year have had 74 moves greater than 5%. But moves this big are very rare even for C3.ai and that is indicating to us that this news had a significant impact on the market's perception of the business.
C3.ai is up 124% since the beginning of the year, but at $24.93 per share it is still trading 26.4% below its 52-week high of $33.87 from April 2023. Investors who bought $1,000 worth of C3.ai's shares at the IPO in December 2020 would now be looking at an investment worth $268.30.
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