Crowder Securities Limited - C3.ai, a hot AI stock, falls on revenue miss, weak outlook

WAN CHAI, Hong Kong - Sept. 14, 2023 - PRLog -- The company's revenue forecast for AI stock was also lower than expected.

C3.ai lost 9 cents per share on an adjusted basis in the July quarter, compared to a 12-cent loss the previous year. Revenue increased by 11% to 72.36 million.

Analysts on Wall Street projected a loss of 17 cents per share on sales of $73.8 million.

Revenue for the current quarter, which ends in October, is expected to be in the $72 million to $76.5 million range. Analysts had predicted a 12-cent loss on $78 million in sales.

In prolonged trading on the stock exchange today, AI stock fell 4.2% to 30.15.

Prior to the C3.ai results release in 2023, AI stock had risen 181%. However, during the frenzy around artificial intelligence stocks, AI stock was up 257% at one time.

AI Stock: Pilot Projects in the Works

Meanwhile, C3.ai shares soared in 2023 on excitement around startup OpenAI, ChatGPT, and generative AI technologies.

C3.ai anticipates that revenue growth will resume as additional AI pilot projects scale up production.

C3.ai is one of several AI stocks to keep an eye on. According to IBD Stock Check-up, C3.ai had a Relative Strength Rating of 97 out of a possible 99 going into the earnings announcement.

The first public offering (IPO) of C3.ai in early December 2020 garnered $651 million.

The software company assists businesses in developing artificial intelligence applications and targets the energy, financial services, and military areas. The corporate AI software supplier switched its pricing approach from subscription to consumption-based in December.

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