C3.ai Inc (NYSE:AI) shares are trading higher Wednesday morning as the company is reportedly in discussions to merge with Automation Anywhere. Here’s what investors need to know.
What's Behind The Surge?
Wednesday’s surge follows news that if the deal goes through, Automation Anywhere would acquire C3.ai and go public, reflecting strong interest in the enterprise AI sector. The company, known for its enterprise AI software utilized by clients like the U.S. Air Force, is exploring various options following the departure of its founder and CEO, Thomas Siebel.
C3.ai did not immediately respond to Benzinga's request for comment regarding the potential transaction.
The discussions come after C3.ai reported a smaller-than-expected quarterly loss of 25 cents per share in December, while slightly beating revenue estimates at $75.15 million. Management at the time pointed to strong performance in its federal business as a key driver of growth.
Short-Term Gains Mask Long-Term Weakness
Currently, C3.ai is trading approximately 4.2% above its 20-day simple moving average (SMA) but is 10.8% below its 100-day SMA, indicating some short-term strength while struggling with longer-term trends. Over the past 12 months, shares have decreased by 61.82% and are positioned closer to their 52-week lows than highs.
The RSI is at 37.44, which is considered neutral, but it’s approaching oversold territory. Meanwhile, the MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $14.50
- Key Support: $13.00
C3.ai’s Business Model
C3.ai is an enterprise artificial intelligence company. The company provides software-as-a-service applications that enable customers to rapidly develop, deploy, and operate large-scale Enterprise AI applications across any infrastructure.
It provides solutions under three divisions namely, The C3 AI Platform, which is an end-to-end application development and runtime environment for designing, developing and deploying AI applications; C3 AI Applications, which is a portfolio of pre-built, extensible, industry-specific and application-specific Enterprise AI applications; and C3 Generative AI, which combines the utility of large language models.
Recent Price Targets Reflect Market Uncertainty
Investors are looking ahead to the next earnings report on Feb. 25.
- EPS Estimate: Loss of 46 cents (Down from Loss of 12 cents YoY)
- Revenue Estimate: $75.87 million (Down from $98.78 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $26.41. Recent analyst moves include:
- Wedbush: Outperform (Maintains Target to $20.00) (Dec. 4, 2025)
- DA Davidson: Underperform (Maintains Target to $13.00) (Dec. 4, 2025)
- Canaccord Genuity: Hold (Maintains Target to $16.00) (Dec. 4, 2025)
AI Stock Soars Wednesday
AI Price Action: C3.ai shares were up 5.08% at $13.24 at the time of publication on Wednesday, according to Benzinga Pro data.
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