The article discusses three AI stocks—Palantir, C3.ai, and Rigetti Computing—that investors might consider selling by 2026 due to high valuations, declining financial performance, and competitive challenges, despite the overall growth in the AI sector.
C3.ai's stock price target has been reduced following a disappointing Q1 report and the withdrawal of its future guidance, prompting analyst reactions and concerns about the company's outlook.
C3.ai's stock dropped sharply after missing earnings estimates, announcing a leadership change with CEO Thomas Siebel stepping down, and withdrawing its fiscal 2026 guidance due to organizational disruptions and health issues. The company's market cap is around $2.3 billion, and analysts are divided on its future prospects, with some seeing potential upside based on target prices.
C3.ai's stock dropped significantly after missing Q1 earnings expectations, and the company announced a new CEO, reflecting challenges in its financial performance and leadership transition.
C3.ai's stock dropped 30% after missing revenue estimates by 33%, with preliminary revenue of around $70.3 million, significantly below analyst expectations, due to restructuring and CEO health issues, leading to a downgrade by DA Davidson.
C3.ai has restructured its global sales and services organization and appointed new leadership after projecting a 33% decrease in revenue to approximately $70.2-$70.4 million, significantly below its previous expectations.
Palantir Technologies has seen significant stock gains in 2024 due to high demand for its AI software, but its high valuation poses risks. Investors seeking alternatives might consider C3.ai, which offers a cheaper valuation and strong growth potential. C3.ai's recent quarterly results showed a 29% revenue increase and improved financial performance, with new agreements with major companies and federal agencies. Trading at a lower price-to-sales ratio than Palantir, C3.ai is positioned for potential gains, making it an attractive option for those interested in AI stocks.
C3.ai's stock fell by 4.2% despite beating fiscal Q2 2025 earnings expectations, as investors reacted to the company's significant GAAP loss of $0.52 per share, which overshadowed the non-GAAP loss of $0.06 per share. The company's revenue grew by 29% year-over-year, but its path to profitability remains unclear, with management forecasting continued non-GAAP losses and slowing growth. Analysts predict ongoing losses through 2027, prompting investors to sell the stock.
Shares of C3.ai experienced volatility as the company reported better-than-expected quarterly results and raised its outlook, prompting analysts to maintain a positive stance despite mixed guidance.
C3.ai's stock rose by about 7% in premarket trading after the company reported better-than-expected fiscal Q2 results and raised its full-year revenue guidance. The company posted a smaller-than-expected adjusted loss and saw a reacceleration in subscription revenue growth. C3.ai is investing in marketing and sales, leveraging its partnership with Microsoft, and expects faster sales cycles. However, analysts remain cautious about its growth and profitability outlook, particularly as subscription revenue growth excluding demonstration licenses was modest.
On Monday, U.S. stock indices fell, with notable movements in several trending stocks. Nvidia's shares dropped 2.55% due to an antitrust probe in China, while AMD fell 5.57% following a downgrade by B of A Securities. C3.ai rose 2.86% after beating earnings expectations and announcing a partnership with Microsoft. Oracle declined 0.65% despite a 9% revenue increase, missing estimates. Tesla saw a slight increase of 0.15%, buoyed by optimism over its self-driving technology and positive analyst sentiment.
C3.ai's stock surged over 13% following better-than-expected quarterly earnings, with sales growing 29% to $94.3 million and a loss of 6 cents per share, outperforming analyst expectations. The stock has been volatile, influenced by factors like a partnership extension with Microsoft and a shift to consumption-based pricing. Despite recent gains, the stock is not currently considered a buy as it is extended from its latest entry point.
C3.ai reported better-than-expected Q2 results, with a loss of six cents per share and revenue of $94.34 million, marking its seventh consecutive quarter of accelerating revenue growth. Subscription revenue increased by 22% to $81.2 million, and the company highlighted its strategic alliance with Microsoft as a key growth driver. C3.ai's stock rose 12.6% in after-hours trading following the announcement.
C3.ai reported better-than-expected fiscal second-quarter results, with a smaller loss of 6 cents per share and a 29% revenue increase to $94.3 million, surpassing Wall Street's predictions. The company also provided optimistic revenue guidance for the current quarter, leading to a 16% rise in its stock price. C3.ai, which focuses on AI applications for various industries, is transitioning to consumption-based pricing and has expanded its partnership with Microsoft.
C3.ai, an early pioneer in enterprise AI software, offers a unique investment opportunity with its stock currently trading at $25.90. The company provides over 40 turnkey AI applications across 19 industries, including partnerships with tech giants like Amazon and Microsoft. Despite short-term losses, C3.ai's revenue growth is accelerating, and its substantial cash reserves allow it to sustain operations while capturing long-term AI market potential. Investors might consider allocating $30 to C3.ai stock and holding it for the next decade as the AI industry expands.