Transcription
boom what's up you guys it's Royce Jacob
and welcome back to the channel C3 AI
Inc a name that has been a member of the
Waves portfolio for almost two years now
has just announced earnings and as we
expected and hoped they absolutely
crushed expectations the stock is
rallying higher in after hours even as
the greater markets sell off which makes
it especially impressive and uh with all
that being said things are looking very
good for AI and I think a second wave
could be on the
horizon in the title I imply that C3 AI
Inc could be the next paler that may
make sense if you've are a member of the
portfolio group the newsletter group or
if you've just been keeping up with a
lot of the recent paler videos and uh
just right off the bat I want to make it
clear that these are two very clearly
different companies with two very
different business models uh the reason
I am referencing or or relating C3 AI
Inc to a potential pounder is the
potential for a hype cycle and a
two-wave pattern which paler just played
out and uh I'm really proud to say that
this morning I'm not going to look at
paler right now but uh again $80 was my
wave to price target for paler a lot of
you would know that and uh this morning
we tested it near perfectly I sold off
my paler call options bought some paler
puts and uh those are clearly paying off
given the fact that paler paler closed
the day down 5% so thank things are
looking good in the Wes portfolio before
we jump into C3 and before we discuss
some price action and potential wave two
Targets for AI stock um if you want to
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if you are riding with me then congrats
because we are looking good C3 coming
down uh just even as I've I've been
recording this and I've been prepping
this video uh we were up like 15% and
after after hours following the news but
again Nidia Nvidia uh really led the
markets lower today and that's just kind
of creating a cloud over the sector but
as always as paler was as AI has been
there will always be pal uh Diamonds in
the Rough there will always be peners in
the mix and um I do think that C3 after
this earnings report definitely has the
potential to be one of those okay so
let's read this and then we'll dive into
the charts talk potential targets C3 AI
jumps as it boosts full year guidance
after strong Q2 results on AI momentum
C3 AI shares Rose more than 14% in late
trading on Monday after the enterprise
software company updated its full year
guidance after the company reported
fiscal second quarter results that
topped expectations led by continued
strengths and AI related spending the
company now expects fiscal 2025 Revenue
to be between 378 million to 398 million
up from a pre previous range of 370 mil
to 395 mil analysts have been expecting
the company to generate
382.33 AI expects Revenue to be between
95.5 M and 100.5 M with the midpoint of
98 million slightly above the 97.5
estimate quarterly results for the
period ending October October 31st the
Thomas Seed Company lost an adjusted 6
cents per share as Revenue Rose 28.8%
year-over-year amazing to come in at
94.3 million included in that was a 22%
rise in subscription Revenue to 81.2
million while Professional Services
Revenue surged 90% year-over-year to
13.2 million those are impressive
year-over-year metrics analysts expected
the company to lose an adjusted 16% uh
16 cents per share on $91 million in a
revenue so both of those pretty pretty
darn solid beats I mean that's like a 5%
beat on on expected revenue and a
significant beats on uh I guess 10% uh
less per share in losses this is a quote
from their CEO Thomas seel who keep in
mind has sold a company in the past this
has been a a reason um that I've been
bullish on AI for again since like
December of 2022 now so I guess two
years it has been in the portfolio
um and that is the potential for
acquisition C3
AI is a company that is led by a man who
is previously sold a company for
billions of dollars many many moons ago
so actually including inflation it's a
lot more than that now but having a CEO
and founder who has done this in the
past shows that they are open to a
potential acquisition and actually
potentially even seeking an acquisition
down the line C3 AI also as we all read
here I'm not going to talk anymore until
I read this and then I'll keep elbing we
had an outstanding quarter with strong
top and bottom line performance to Mark
our seventh consecutive quarter of
accelerating Revenue growth see said a
statement it's difficult to overstate
the potential of the Microsoft C3 AI
strategic Alliance by establishing C3
aai as a preferred AI application
provider on aour and creating a
Microsoft scale go-to Market engine
we're making it easy for businesses to
adopt and deploy C3 AI applications this
is an inflection point for Enterprise AI
driving growth
this deal which just really catalyzed a
breakout in C3 AI about last week um
again Mr seel said it I'll just Echo
that it's hard to understate that having
the cosign of what is the third largest
company in the entire world um AI really
man really giving up some of those gains
in after hours it'll be interesting to
see if this translates into the day
ahead and if this will be the next paler
who knows but uh again good thing we got
puts on deck if the markets do just
bed tomorrow but um regardless from a
fundamental perspective this is an
incredibly bullish earnings report um
again the deal with Microsoft is
indisputably bullish at least in my
opinion um just not only because it they
they have the cosign of again a company
is established in uh such a legacy yet
still growing company like Microsoft um
they are as I said in the previous video
when we first discussed that
deal now primary targets for acquisition
by Microsoft themselves and again a$3
trillion company doesn't bat an eye at a
company that's worth now what like5
billion so um again super super
appealing everything is looking good
every like the stars are aligning for
c3i Inc especially they they just hit a
new 52- we high today which is just a
nice cherry on top and um although again
a lot of these gains have 14% uh like an
hour ago to 3% and a half hours now um
still bullish I I still like
if again if you're a member of the
portfolio group you would know that I'm
very heavily positioned in this company
not only with common shares but with
call options as well um also thankful
that if you know maybe if the Bears do
win if kind of the greater the macro
storm clouds do consume the optimism
that we're seeing in the Mar in after
hours right now um I did take a lot of
profits today from C3 AI as well still
have a large position on Deck but I did
take a lot of profits from specifically
December 20th call options position uh
just to give you guys some insight as to
how I operate prior to earnings okay I
think we like
2.5x um that 1220 call position okay and
I kept January calls just for again a
little more transparency but um if we do
get a second wave up if this optimism
does carry into the day ahead and into
the weekend ahead which I think is again
very very possible I think this could be
a dime in the rough even if the greater
markets do continue to sell off um I do
think that AI can jump into the range of
52 to $60 that is a large range yes but
um in my
opinion what we're seeing now is fairly
similar to the move we saw back in May
of 2023 and this is the same way that I
uh um distinguished or kind of just
recognized paler wave two price Target
is by identifying a similar pattern in
the past driven by similar fundamental
Catalyst again earnings report you can
see back in what is this in May of okay
so may back here in May of
2023 we we experienced an earning
support this is just going into 2024 but
it was it was the same time in May so
like mid to late May C3 announced
earnings they got a second wave up
following a slight selloff and a slight
kind of bull flag formation which we see
right here okay right here where my
cursor is clicking following that
breakout we saw 15% Rally or I'm sorry a
57% rally if we mirror this 50% 57%
rally that takes to the mid level of my
target range which just is a historical
like a historical region of ceilings and
floors um that we saw back in
2021 and that is again from 52 bucks to
60 bucks the median of that range being
like 55 56 bucks so where will I take
profits if we do happen to climb higher
it would be about 55 bucks okay I'll
realistically I'm going to start taking
profits probably around 5150 just to
front run on the crowd you always want
to be one step ahead of your competitor
when you're trading um so I will
definitely be uh realizing some profit
scheming call options off of my existing
call position once and if we do see like
5150 and uh with each percent higher
with each take higher with each
consecutive Green Day I will take more
off of my position best case scenario is
a$ 7 $70 C3 AI just acted as a
significant ceiling in the past um is it
possible we rally High in the year ahead
into 2025 absolutely I think that this
is a very valuable company and uh um
again especially if they get acquired as
I was alluding to earlier that could
drive the company significantly higher
and especially by Microsoft again a lot
of positive potentially positive
catalysts are in the pipeline for C3 at
least in my opinion and um this is a
company that I'm absolutely willing to
speculate on and always know my money is
where my mouth is so let's hope for wave
two uh again if we do sell off if this
earnings momentum does not carry over
into the dayhe head because we just keep
getting lower as I record this video
happens it's okay again I have plenty of
specifically you guys know this Dell put
options that I think we'll be printing
in the days ahead okay and paler puts
now too that if if we do see a popping
of the paler bubble those will print I
think I'm already up like 250% on those
options to be honest so uh Good Times
regardless of what happens we're ready
and we're ready to tackle um um ready to
keep trading as well as best as we can
so with all that being said I appreciate
you guys watching I hope you gain some
value from this video and uh yeah please
let me know in the comments down below
what you think of AI what you think of
paler what you think of Nvidia um how
you're feeling about the markets overall
right now and uh yeah always love
chopping it up with you guys in the
comments downstairs until next time
always remember take action make waves
peace and