C3.ai stock surges following Q4 earnings update

The Yahoo Finance Live team breaks down the surge in CS.ai stock after its Q4 earnings update, AI popularity, and the company's investigation results from short-seller allegations.

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- On the flip side, Morgan Stanley maintaining its underweight rating when it comes to C3.ai, another company we're looking at, the technology company specializing in artificial intelligence, AI. It pre-released its fourth quarter results this morning. They were above expectations, nearly above the guidance range issued within its Q3 earnings. The stock finished up 23%. Revenue came in at $72.1 million. So that was better than expectations.

And C3.ai had been a big beneficiary of just all the chatter around AI. Investors had piled into that stock, then they kind of backpedaled. Back in today.

SEANA SMITH: Yeah. Well, there's certainly been a lot of activity when it comes to C3.ai, the hype around ChatGPT, what we've seen from OpenAI clearly playing into that. We're looking at gains of over 100% since the start of the year. So you can see that AI frenzy, the appetite for investors to have exposure to AI that's clearly reflected in the stock price since the start of the year.

But what also caught my attention was the response that we got here from the company in terms of it after being targeted by short sellers. Now they were targeted by Spruce Point and Kerrisdale, and the company coming out saying that they conducted an independent investigation with outside counsel and auditors and found no wrongdoing. They also went further with that and said that the investigations, "found that none of the allegations or insinuations of wrongdoing made by either Spruce Point or Kerrisdale were supported by the facts, and no irregularities, misrepresentations, or omissions in the company's prior disclosures were identified."

We know that that has certainly been a headwind here for the stock as of the last several weeks. But again, shares soaring today, up more than 100% since January 1.

- Yeah.