C3.ai Stock Swings as CEO Plans Large Share Sale – Despite Strong Performance and Microsoft Alliance
C3.ai’s (NYSE:AI) share price fluctuated on Tuesday following the release of a regulatory disclosure revealing CEO Thomas Siebel’s intention to sell millions of shares. The disclosure overshadows positive second-quarter results that exceeded analyst expectations.
Siebel is planning to sell about 12.78 million shares, which carry an expiration date of December 17, 2026. This represents nearly 53.9% of the company’s total voting power. As of October 31, Siebel and connected companies controlled nearly 87.8% of the Class B common stock and 21.6% of the Class A shares, demonstrating a significant ownership stake.
Despite the planned share sale, C3.ai released promising second-quarter earnings. The company reported a fiscal second-quarter loss of $0.06 per share, bettering analysts’ predictions from Visible Alpha who had forecast a $0.14 loss. Revenue also surpassed projections, surging 29% to reach $94.3 million.
Adding to the dissonance, C3.ai also announced a strategic alliance with tech giant Microsoft (MSFT) in September, designating C3.ai as the recommended artificial intelligence application provider for Microsoft’s Azure platform. This collaboration could further fuel growth for C3.ai, positioning the company at the forefront of the AI landscape.
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C3.ai stock has skyrocketed in recent weeks,” with a remarkable surge of almost 58% in the past month alone, and a further 16% increase in the past five days. The company’s stock appears to be on fire, driven by a confluence of positive developments. Additional positive factors include strong financial results and the strategic partnership with Microsoft.
