C3.ai (NYSE: AI) has been soaring this year, quadrupling in value as the hype around artificial intelligence (AI) has sent the stock to new heights. But investors were a little bit disappointed with the company’s guidance as, despite all the company’s AI tools and solutions, management was forecasting what many thought was a modest growth rate of 15% for fiscal 2024. But a recent interview with CEO Tom Siebel seems to suggest that the lowered expectations may have been a strategic decision.
In a recent interview with Barron’s, Siebel acknowledged that he sees much more growth ahead for the business. He says the stock “has been reset to a reasonable level,” and that “we’re now in position to beat-and-raise, beat-and-raise and beat-and-raise.”
By not declaring outright that C3.ai will generate higher growth, Siebel set the bar low. And Wall Street loves a solid earnings beat. By not showing analysts all of the company’s cards, Siebel has taken some of the pressure off C3.ai in upcoming quarters.
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