C3.ai
Shares of C3.ai (AI) are trading 25% higher this morning after better-than-expected earnings numbers. The company also reiterated their forward-looking guidance. The latter of these is the reason that the market is excited about the stock today as the company spent the last two quarters lowering their guidance.
The refreshed outlook for the stock should set prices on a long-term rally that will likely target its old highs of $50.
For what it’s worth, AI shares have been displaying strong technical support at $25 since September, 2023.
This is due to the psychological importance of $25 and the fact that AI’s 20-month moving average also sat just below the $25 price point.
The 20-month moving average is a technical measure of whether a stock or index is in a long-term bull market.
More than 50% of the analysts covering the stock have it ranked a hold or sell, expect that to change over the next week with upgrades that should drive prices higher.
Snowflake
Dropping 20% to critical price support, Snowflake (SNOW) shares are having a tough morning.
The move is due to two things…
First, the forward-looking expectations of SNOW’s management was lighter than Wall Street anticipated.
Second, the announcement of the retirement of Snowflake’s CEO, Frank Slootman.
The stock’s cratering drop puts it at $180, which has been a “bottom” for prices in January. A break below $180 will likely increase technical selling, dropping the stock to $175 where its 200-day moving average sits for potential support.
Palantir
Palantir (PLTR) shares are on the move today as C3.ai and Salesforce (CRM) earnings are putting the AI trade back on top of the market. But there’s a catch.
Shares of Palantir have been consolidating after a 10% correction following the stock’s 50% rally after their last earnings report. The 10% correction is important because it sets the stock up for its next breakout rally higher.
PLTR shares are now breaking back above $25 – a key psychological price for investors – which should fuel another 10-20% rally in the shares. This puts an intermediate-term price target of $27.50 – $30 on the stock.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.
