Why C3.ai Stock Popped Today
Key Points
Media reports suggest C3.ai intends to merge with Automation Anywhere.
The rumors are not confirmed and C3 doesn't look attractive if the merger does not happen.
- 10 stocks we like better than C3.ai ›
C3.ai (NYSE: AI) stock jumped 2.1% through 9:50 a.m. ET Wednesday after The Information and other media outlets reported the artificial intelligence app maker is in merger talks with privately held AI company Automation Anywhere (AA).
Image source: Getty Images.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Details, please
Details on the rumored transaction are sparse. What we do know is this:
San Jose, Calif.-based Automation Anywhere is believed to have had a private market valuation of $6.8 billion in 2019. While it's unclear how much AA is worth today, any merger between it and C3.ai -- valued at only $1.8 billion, and just $1.1 billion net of cash -- would probably take the form of AA buying C3.
In other words, this isn't so much a merger as a buyout -- if it even happens.
Is C3.ai stock a buy?
And of course, it may not happen, in which case buying C3.ai stock on rumors that Automation Anywhere might buy it would result in nothing more than you owning C3 stock. Would that be a good or bad idea?
Most likely bad.
C3 has been losing increasing amounts of money every year for the last five years. Over the last 12 months, C3 stock racked up $381 million in losses, and analysts polled by S&P Global Market Intelligence say that's not changing anytime soon. As far out as analysts are willing to make projections (2028), C3 is forecast to keep losing money.
Granted, C3 does have the cash to last that long. With $675 million in the bank and annual cash burn of $93 million, C3's probably got seven years or more before it runs completely out of money. The bad news is that, unless AA buys it... C3 may keep losing money for all seven of those years.
Should you buy stock in C3.ai right now?
Before you buy stock in C3.ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and C3.ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 28, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
Recommended Articles
