Wolfe Research downgrade causes C3.ai stock to tumble.
Originally Published 2 years ago — by Investor's Business Daily
Wolfe Research analyst Joshua Tilton downgraded C3.ai due to concerns about the company's transition to a consumption-based pricing model, which could negatively impact sales growth. Additionally, a newly restructured agreement with Baker Hughes means C3.ai will have to increase its other revenue sources to meet fiscal year 2024 expectations. Tilton calls for just 11% growth in sales, while the company's initial outlook implies 30% revenue growth. The downgrade sent AI stock down 11%.