- Needham analyst Mike Cikos reiterated a Hold on C3.ai, Inc AI.
- He listened to last week’s C3 AI product demo, one of several application-specific webinars the company is hosting to make its products more accessible and explain the technology’s value proposition.
- On September 2, Cikos downgraded the stock calling its shift toward a consumption model “necessary but time-consuming.”
- For C3 AI CRM, he was impressed by the volume of data sources the company can ingest to tune and feed Machine-Learning models for use-cases such as Precision Sales Forecasting and Price Optimization.
- The magnitude of improvement via C3 AI CRM’s predictive analytics is impressive. However, deployment times need to speed up from the current range of 8 weeks to 6-plus months – depending on the customization required.
- To this end, C3 AI has articulated its vision of migrating to a Consumption-based model, which aligns with the pricing model for the company’s growing strategic Alphabet Inc. GOOG GOOGL Google Cloud relationship.
- Also Read: C3.ai Shifts From Subscription To Consumption Model, Analysts Highlight Massive Addressable Market Opportunity
- Price Action: AI shares traded lower by 3.49% at $13.54 on the last check Tuesday.
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