Yahoo Finance’s Allie Canal discusses notable companies and stocks including C3.ai, SoFi and Activision Blizzard after EU regulators approve a deal with Microsoft.
video transcript
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Diana King Hall: Let’s take a look at some of the trending tickers on Yahoo Finance. That’s why Alexandra Kanal is here with us. Ally, please describe what you are seeing.
Alexandra Canal: Hello Diane. Several moving companies came out this afternoon and one of them was his C3.AI. Shares are now up more than 24% after the company posted better-than-expected fourth-quarter earnings. The company also lifted its outlook, saying interest in the application of predictive analytics is “more than ever”.
So this is clearly one of the businesses riding the AI wave, and we’ve seen this across multiple industries. In fact, going back to February, C3.AI’s stock price rose 100% during the month. It was at this point that investors really started hearing about his ChatGPT on OpenAI.
Today’s rally in stock comes after some turbulent times for the company. Earlier last month, we received a short-selling letter alleging that his C3.AI engaged in “aggressive accounting to inflate the income statement.” The company responded with a statement of its own, and the letter was a highly creative and transparent statement by a self-proclaimed short seller who shorted the stock, published an inflammatory letter to drive the stock price down, and then tried to cover up the stock price. I wrote that it seems to be an attempt. Short and pocket the profit.
Year-to-date, C3.AI is up about 100%. But while its share price is rising, SoFi Technologies is falling. It’s another stock I’ve been watching this afternoon, and its stock fell slightly less, about 4.5 percent, following Wall Street’s downgrade. Analysts at Wedbush downgraded the stock to underperforming from neutral and lowered their price target to $2.50 per share from $5.
In a memo released today, the analyst said financial services firms may be “nearing a tipping point in the fee income they recognize from loan applications and sales,” with fee income likely to decline significantly. warned of potential Wedbush believes that using fair value accounting may overstate SoFi’s capital levels, adding that he does not believe SoFi will change its accounting method in the near term.
In addition to those headwinds, analysts said the company may consider raising capital this year to support growth. As such, Wall Street remained somewhat skeptical of the stock, and the stock was under pressure all day. It has recovered from this morning’s lows.
Sheena Smith: Ally, another big trend ticker. Actually two things here, Microsoft and Activision got some welcome news in the EU and got EU approval. What do I see in my inventory?
Alexandra Canal: That’s right, Activision, as you said, is now the top trending ticker on the YF site shortly after that deal was approved. It’s rising modestly. And Microsoft stock is currently relatively flat. However, the European Union’s antitrust regulator said in a press release that its approval includes a full agreement with Microsoft to enter into a long-term licensing agreement that will allow game consumers to continue to access Activision’s games, including Call of Duty. said it was conditional on compliance with A popular one there.
Now, of course, given that the UK rejected the same plan last month, the story isn’t over yet. And here in the US, the Federal Trade Commission continues to evaluate the deal. Yahoo Finance’s Dan Howley and Alexis Keenan have a detailed explanation on their website. They cut deep into the nuances surrounding this potential deal. And there is clearly a lot of interest as we continue to wait and see if this gets the full approval it needs.
Sheena Smith: that’s right. We waited quite a while. Okay, Ally Kanal, thank you so much.
