AI - Hot Stocks: AI IOT surge on earnings; ZS slumps; VERU craters on FDA decision

Stocks finished higher again on Friday, adding to gains posted the previous day. The Nasdaq led the major averages higher, surging by about 2%.

Among individual stocks, C3.ai ( NYSE: AI ) represented one of the standout gainers, expanding its value by more than a third after the release of its quarterly results. Earnings news also lifted Samsara ( IOT ), with the stock reaching a new 52-week high.

Zscaler ( ZS ) also beat expectations with its quarterly results, but the stock posted a double-digit percentage decline as investors dug into signs of slowing growth. At the same time, Veru ( VERU ) cratered after a major regulatory setback.

Standout Gainer

The release of Street-topping results spurred buying in C3.ai ( AI ). Shares of the AI company jumped 34%.

The firm reported a narrower-than-expected loss for Q3. Revenue dipped 5% to a level near $87M. Looking ahead, AI projected Q4 revenue of $70M-$72M, compared to an analyst consensus of $70M.

AI finished Friday's trading at $28.48, a rise of $7.17 on the day. While the stock failed to top its previous intraday 52-week high of $30.92, shares did record a new closing peak, edging out a previous summit reached in early February.

Amid increased investor attention on the AI industry in general, C3.ai ( AI ) has surged in 2023. The stock has jumped nearly 160% so far this year.

Standout Decliner

Despite quarterly results that beat analysts' expectations, Zscaler ( ZS ) experienced substantial selling pressure, with the stock plunging 11%. The slide came amid concerns about slowing growth and some of the firm's secondary figures.

The cybersecurity company surpassed projections with Q2 earnings and revenue, with a top-line total that surged 52% from last year. The firm projected Q3 revenue of $396M-$398M.

Meanwhile, ZS reported a billings figure of $493.8M, which was characterized by Wedbush analyst Dan Ives as "not the typical massive ... beat" investors have come to expect.

The earnings report sent ZS lower by $14.89, reaching a close of $119.24. The slide took the stock below a recent trading range and to its lowest finish since late January.

Even with the slide, ZS remains higher by 8% for 2023, although it has fallen 47% over the past 12 months.

Notable New High

Samsara ( IOT ) surged 15% on better-than-expected Q4 results . With the advance, the stock reached a new 52-week high.

The firm's loss was not as deep as analysts had expected and its revenue growth exceeded projections at 48%. The IoT company also issued a strong forecast, predicting a top-line total of $190M-$192M for Q1. Analysts were looking for a figure of around $183M.

Bolstered by the financial figures, IOT soared $2.60 to close at $19.48. During the session, the stock reached an intraday 52-week high of $20.73.

The upswing extended recent gains, with shares up 31% over the past month. IOT has climbed 63% so far in 2023.

Notable New Low

An adverse regulatory decision for the firm's COVID treatment triggered a wave of selling in Veru ( VERU ), with the stock plunging to a new 52-week low. Shares eventually ended 36% lower on the day.

The U.S. Food and Drug Administration denied Emergency Use Authorization for the firm's sabizabulin product as a treatment for hospitalized adult patients with moderate to severe COVID-19 who are at high risk for Acute Respiratory Distress Syndrome.

"We are disappointed in the FDA’s decision to decline the request for an EUA because of the possibility of unknown influences, or uncertainties that may have affected the study," the company's CEO said, adding that in a previous meeting with regulators, the FDA "indicated that our clinical data package was sufficient to support an EUA submission."

VERU plummeted to an intraday 52-week low of $2.26. The stock eventually finished at $2.42, down $1.36 on the session.

Overall, the stock has dropped 53% so far in 2023. VERU has lost about 90% of its value since setting a 52-week high of $24.55.

For more of the day's biggest winners and losers, turn to Seeking Alpha's On The Move section .

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