00:00 Brian Sotzi
Let's launch my inventory that day, C3 AI. Look at this because this previous AI High Flyer Stock crashed today and it's guaranteed. C3 AI issued terrible guidance late Friday. We are aiming to reorganize our sales force. For notebooks, I don't want to see the company issue bad guidance after the market closes on Friday. And Tom Siebel, a company as spiritual leader and CEO, continues to address health issues and search for successors. Da Davidson analyst Lucky Shriner has been called revenue news, quotes and catastrophic. Still with me. My round table, John Campbell, Tom Essay, Brooke DiPalma. Well, I want to get over you. Umm, um, we've seen strength continue in AI trading, but there's this company like C3 AI, but it's absolutely crashing because stocks aren't announced in advance, but this morning we got good news from Micron. Well, what should you believe when it comes to AI trading here?
01:51 John Campbell
Well, I think it was clearly where AI trade has been in the last few years and it was really those AI enablers or purer play AI. And if we are focused on high quality stocks in our process, we don't own companies like C3 AI or other unprofitable UH high tech stocks, but I think it's time to go away from some of the pure theatre and go to bank shots with the names of AI and UH. Therefore, UH companies like Powell Industries and Imcore are focusing on building UH electrical equipment and data centers. So, I think AI trades still have a foothold, but pure theater has become very expensive and quite tough. Well, everything has to go right for those companies at this point.
03:23 Brian Sotzi
Listen, I have more about the selling of this C3 AI after opening my bid on Yahoo Finance.com. I recommend you check it out with everyone. Tom, um, besides the three C3 AIs, um, Palantia is absolutely in tears. It has increased by 2,500% from the IPO, and I think it has increased by more than 150% so far. Can you insist on getting on the momentum despite the ratings of another top AI trade, Palantir, being absolutely outrageous?
04:11 Tom essay
The simple answer is that Palantir posted really good revenue, in stark contrast to C3 AI. I think it was last week or the previous week. Well, they not only defeated it, they also raised guidance. So I think what this underlines is the fact that AI, the whole AI movement, the revolution, whatever we want to call it, there are certain companies that are mature, there are certain companies that are running and there are certain companies that aren't. And if you can do it like a Palantia, you'll get a really big multiple. From my view on Palantir, if Palantir is trading 500x advance revenues, is it much worse than when he was trading 400x futures revenues? You know, we left.
05:07 Brian Sotzi
Tom, I've normalized that. We have not normalized these ratings just for the average investor who is the average person. Usually I was taught, Tom and John, I don't know you, you know, 15, 16 times is a good value. Yeah. Yes, exactly. That's exactly right. So we are far beyond what we consider logical, and the only reason you can buy this is momentum. And given that the revenue is really good, the company is executed, and if they love it with 400 times the revenue and they are running, I hope you love it more in 500 times. Yeah, that's kind of the way I see it.
06:13 Tom essay
yes. p
06:37 Brian Sotzi
John John, let me go back to you. You said you are looking for high quality stocks in a market where everything is rising every day. Define high quality for us.
06:56 John Campbell
Well, define it in a few ways. We see quality from the lens of what we call management behavior. So what are they doing with CAPEX? Um, the structure of the balance sheet, are they buying back stocks? Um, dividend policy? What is their coverage for their debts and dividends? And it's one lens of quality. Another lens, what are the consequences of these capital allocation decisions? So you know, what profit are they generating? Is the profit margin high and rising? Are they generating high cash flows or high returns on investment capital? Umm, um, you know, just work on blocks and working on real company results.
07:59 Brian Sotzi
Brooke, uh, it's worth noting to see this crash on the C3 AI. Now I think I believe the stock has dropped today's price by about 67% from its 52-week height.
08:22 Brook DiPalma
Yeah, and looking at what we saw, YF interactive, we've seen C3 AI lead the laguard overall when it comes to AI space. Looking at C3 AI, it has fallen by more than 50% so far, and is down 36% last year alone. And it is this discretion that we are seeing. I liked how other guests said about these companies that they needed to do it right. You're seeing AMD pay off so far as investors are actually gathering from those April lows. We also see Nvidia pay off once again. And so it's interesting to see this dichotomy, I guess you could say, these differences between companies not necessarily putting out the results that investors want versus uh what others are doing that are really leading to these record highs as you could see holding onto that momentum year to date, even Super Micro really gaining momentum down you down over the year, but up more than 50% year to date.
09:46 Brian Sotzi
Yeah. Note to Jensen Wong and Lisa Su, um, don't reorganize your sales team.
