On Friday, after the close, C3. ai announced CEO Thomas Siebel is stepping down, with a new leadership team taking over. The stock dropped almost 14% on the news, slashing its market cap and potentially making it irresistible for a takeover bid. They are looking for a new CEO!
Why this matters:
1. Perfect M&A Timing: C3. ai has proven AI tech, including contracts with the U.S. Department of Defense. The right acquirer could turn this into the next Palantir-style success story. Leadership changes often make buyouts easier.
2. Valuation Reset: The 14% drop gives strategic buyers a cheaper entry point, exactly when they might be circling.
3. Massive Call Buying Before News: Just last week, someone dropped $5.8M on Sept 19 $25 strike calls. That’s a high-conviction, short-dated bet. Nobody throws around that kind of money without expecting a big move, possibly insider knowledge of a deal or major contract.
4. Strategic Fit: Defense contractors or big tech companies could instantly expand their AI footprint by acquiring C3.ai.
Palantir built its empire by combining cutting-edge data analytics with deep government and defense relationships. C3. ai is following a similar blueprint and may be earlier in the curve:
1. Strong Defense Footprint: C3. ai already holds contracts with the U.S. Department of Defense and other government agencies, positioning it in the same secure, high-margin niche that powered Palantir’s growth.
2. Mission-Critical AI Solutions: Just like Palantir’s Gotham and Foundry platforms became embedded in government workflows, C3. ai’s AI suite is designed for enterprise and defense applications that are hard to replace once integrated.
3. Massive TAM (Total Addressable Market): The AI defense and enterprise analytics market is projected to grow exponentially over the next decade, mirroring the macro tailwinds Palantir rode after 2020.
4. Sticky Contracts: Government and defense clients tend to lock in long-term, high-value contracts once a system is deployed, creating predictable recurring revenue streams.
5. Potential for Commercial Expansion: Palantir went from mostly government to a healthy commercial mix. C3. ai could follow the same path, leveraging its defense credibility to win private-sector deals.
6. Strategic Acquisition Target: Big tech and defense primes would love to own a proven AI platform with federal clearance — just as Palantir’s unique positioning has made it a darling of Wall Street and a fortress against competition.
In short: C3. ai today could be where Palantir was a few years ago!
If acquired or scaled correctly, the upside could be just as explosive!
Why this matters:
1. Perfect M&A Timing: C3. ai has proven AI tech, including contracts with the U.S. Department of Defense. The right acquirer could turn this into the next Palantir-style success story. Leadership changes often make buyouts easier.
2. Valuation Reset: The 14% drop gives strategic buyers a cheaper entry point, exactly when they might be circling.
3. Massive Call Buying Before News: Just last week, someone dropped $5.8M on Sept 19 $25 strike calls. That’s a high-conviction, short-dated bet. Nobody throws around that kind of money without expecting a big move, possibly insider knowledge of a deal or major contract.
4. Strategic Fit: Defense contractors or big tech companies could instantly expand their AI footprint by acquiring C3.ai.
Palantir built its empire by combining cutting-edge data analytics with deep government and defense relationships. C3. ai is following a similar blueprint and may be earlier in the curve:
1. Strong Defense Footprint: C3. ai already holds contracts with the U.S. Department of Defense and other government agencies, positioning it in the same secure, high-margin niche that powered Palantir’s growth.
2. Mission-Critical AI Solutions: Just like Palantir’s Gotham and Foundry platforms became embedded in government workflows, C3. ai’s AI suite is designed for enterprise and defense applications that are hard to replace once integrated.
3. Massive TAM (Total Addressable Market): The AI defense and enterprise analytics market is projected to grow exponentially over the next decade, mirroring the macro tailwinds Palantir rode after 2020.
4. Sticky Contracts: Government and defense clients tend to lock in long-term, high-value contracts once a system is deployed, creating predictable recurring revenue streams.
5. Potential for Commercial Expansion: Palantir went from mostly government to a healthy commercial mix. C3. ai could follow the same path, leveraging its defense credibility to win private-sector deals.
6. Strategic Acquisition Target: Big tech and defense primes would love to own a proven AI platform with federal clearance — just as Palantir’s unique positioning has made it a darling of Wall Street and a fortress against competition.
In short: C3. ai today could be where Palantir was a few years ago!
If acquired or scaled correctly, the upside could be just as explosive!
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Trading COURSE bit.ly/tradex
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BUY-SELL INDICATORS tradingindicators.store/
Related publications
Disclaimer
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Private SIGNALS patreon.com/PremiumOptionsSignals
Trading COURSE bit.ly/tradex
RESULTS bit.ly/TG10x
TradeNation bit.ly/t10X
CRYPTO partner.bybit.com/b/37880
BUY-SELL INDICATORS tradingindicators.store/
Trading COURSE bit.ly/tradex
RESULTS bit.ly/TG10x
TradeNation bit.ly/t10X
CRYPTO partner.bybit.com/b/37880
BUY-SELL INDICATORS tradingindicators.store/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.