2023-04-24 07:12:36 ET
- C3.ai ( NYSE: AI ) stock fell more than 5% on Monday as investment firm Wolfe Research downgraded the enterprise software company, citing concerns about spending.
- Analyst Joshua Tilton lowered his rating on C3.ai ( AI ) to underperform from peer perform, while setting a per-share price target of $14, noting that there are "significant risks" to fiscal 2024 revenue growth, as spending budgets are likely to be impacted by a "negative macro outlook."
- Additionally, Tilton noted that companies are continuing to consolidate their spending on software, "which in our view, threatens the uptake of C3.ai’s newly introduced consumption model."
- Led by CEO Thomas Siebel, C3.ai ( AI ) shares have gained more than 80% year-to-date and were up more than 200% earlier this month.
- Other artificial intelligence-linked stocks were mixed following Tilton's C3.ai ( AI ) downgrade, as SoundHound AI ( SOUN ) traded higher, while BigBear.ai ( BBAI ) slipped.
- Earlier this month, C3.ai ( AI ) said claims that the gross margin from its Baker Hughes deal were 99% were "simply not true."
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C3.ai cut to underperform by Wolfe Research, stock tumbles