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written by reader Bezos is reinvesting his money into a company utilizing a fast-emerging technology…that he believes will “improve every business.”

By mountinfun, December 22, 2019

Motley Fool says Bezos is dumping Amazon and is reinvesting his money into a company utilizing a fast-emerging technology…that he believes will “improve every business.” Motley Fool teases further:
”He’s not alone in seeing it this way…
A Shark Tank billionaire says it will create the world’s first trillionaire
Elon Musk is contributing to a $1 billion investment in this technology
Even super-investor Warren Buffett says that it’s “enormously disruptive” and will have a ”hugely beneficial social effect”
And there is a tiny component powering this tech revolution… a component that Amazon doesn’t produce in-house…”
What Company are they pitching?

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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Florence Huntington Bradley
Florence Huntington Bradley
August 23, 2021 12:27 pm
Reply to  mountinfun

So what’s the ticker. Someone said A1.A3 or A1A3 but they don’t work.

timmickiewicz
timmickiewicz
December 26, 2019 11:29 am

So what is the secret teaser? I can’t figure it out. The fools are not alone with this tease. I tried doing a bit of backdoor research, but it all leads to other teaser sites. I wanna make a trillion too!:)

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jesse
Guest
jesse
January 12, 2021 6:16 pm
Reply to  timmickiewicz

the stock is called AI and goes by ticker simble A3.AI.

Florence Huntington Bradley
Florence Huntington Bradley
August 23, 2021 12:23 pm
Reply to  jesse

That comes up as Newgate Funding

Daniel Gnatz
Guest
Daniel Gnatz
March 21, 2021 11:52 am

Glad to join

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Travis Johnson, Stock Gumshoe
August 23, 2021 12:49 pm

These Motley Fool Stock Advisor AI pitches over the years have almost always focused on the chipmaker fueling a lot of AI work, NVIDIA (NVDA). For those asking about the ticker “AI”, that’s the ticker for the company C3.ai, which came public fairly recently . AI has been disclosed as a stock that the Motley Fool recommends and owns since about June, though I haven’t yet covered any teaser pitches that specifically hint at that one.

Here’s what I noted about AI in a Friday File back in May, FWIW:

C3.ai (AI) is beginning to come down to prices where you could begin to make some rational valuation arguments… but it’s still really tough to justify unless you have a high degree of certainty that they’re going to add some more large clients — their “flagpole” customers are huge, they have only 30 or so customers and have a very concentrated dependence on their biggest customers (Engie and Baker Hughes brought in more than a third of AI’s revenue last year)… which is a challenge if you have a bad couple quarters with no big customer sales or lose a big customer (so there’s also a specific and immediate risk right now, as they’re reportedly renegotiating the Baker Hughes contract).

Still, they have huge contracts for an enterprise cloud software company, and if they’re as impressive as they believe themselves to be and can inspire other big customer to sign on (the strategy is to sign “lighthouse” customers and use them to impress the rest of the sector and bring on more customers), then they can grow into this valuation eventually. With that kind of customer concentration, though, and with customers where one big renegotiation can dramatically shake up the business, you have to know it really well to buy — and I don’t know C3.ai well enough yet to pay 30X revenues for what is expected to be only 15-20% revenue growth this year. Their lockup period expires in a week or so, it will be interesting to see if there’s a further dip and some big insider selling.

There’s been some big insider selling now that the lockup has expired, and they report their next quarter in about a week, so the story could change quickly. I haven’t looked into whether there’s since been news on that big Baker Hughes contract, or whether they’ve signed (or lost) any big customers.

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