2024-05-18 11:30:00 ET
Summary
- C3.ai investors were decimated as AI stock fell 45% through its recent lows.
- C3's unprofitability and transition to a consumption-based revenue model are critical headwinds.
- C3 must demonstrate a faster conversion for its generative AI pilots to improve the market's confidence.
- The market seems skeptical about C3's growth thesis, but AI stock's valuation isn't aggressive.
- I explain why I assessed AI had bottomed in April, with a turnaround already underway.
C3 Stock Plunged More Than 45%
C3.ai, Inc. ( AI ) investors have performed poorly since my previous article in early March 2024, highlighting my confidence that C3 stock's bullish momentum could carry on. However, the market had other ideas, as AI suffered a deep pullback, dropping more than 45% from its March highs toward its recent lows. As a result, AI investors bailed quickly from the enterprise SaaS company as the market rotated from the generative AI FOMO....
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C3.ai: Turnaround Already Underway After Its Dramatic Plunge