Entrepreneur
Kurra Bewarse Username: Entrepreneur
Post Number: 3319 Registered: 05-2011
Rating: N/A Votes: 0 | Posted on Wednesday, March 03, 2021 - 9:50 am: | |
Farex:AI is lowest today,,,,,,konalani undhi,,,,,any suggestions please?
C3 (AI) -12% reported underwhelming results given the 50x sales multiple. C3 reported revenue modestly above estimates, growing 19%, but missed billings estimates as the company goes after shorter term contracts. Its hard to justify 50x sales when billings miss and revenue growth is less than 20%. The company guided Q4 revenue modestly above estimates with a slightly larger than expected net loss. The company is diversifying its business away from the energy sector (38% mix down from 59% last year) and remains poised to accelerate growth but the multiple was too rich. Recall, I loved this stock heading into the IPO, but I sold for a quick gain in December as the multiple became excessive relative to the financial performance. Throwing valuation aside, this looks like a good potential entry while the stock retests the low end of its range near $100/share. This stock may not get much cheaper, but I would like to at least wait for a flush under $100 before getting back in. |