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<p class="has-drop-cap">Shares of C3.ai (NYSE: AI) fell 11.1% in the Thursday premarket after the enterprise AI service provider <a aria-label="unveiled (opens in a new tab)" href="https://ir.c3.ai/news-releases/news-release-details/c3-ai-announces-second-quarter-fiscal-2024-financial-results" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">unveiled</a> a disappointing quarterly report. Although the <a href="https://tokenist.com/after-gaining-229-in-a-year-nvidias-stock-price-hits-record-high-day-before-earnings-report/" rel="noopener noreferrer nofollow" class="deco-link">AI frenzy continues</a>, the firm posted weaker-than-expected revenue growth in the fiscal Q2 2024 and missed estimates for the Q3 outlook.&nbsp;</p>
<h3 id="c3-ai-misses-revenue-estimates-offers-weak-guidance">C3.ai Misses Revenue Estimates, Offers Weak Guidance</h3>
<p>C3.ai, one of the stocks that thrived during the 2023 AI boom, is set for another sharp stock price drop on Thursday.</p>
<p>Notably, the company’s shares fell over 11% in the premarket trading after the enterprise AI startup reported financial results for the fiscal Q2 2024 that missed Wall Street’s expectations.&nbsp;The stock closed at $29.16 on Wednesday, down 3% on the day.</p>
<p>In particular, the firm posted second-quarter revenue of $73.23 million, missing the consensus projection of $74.33 million, although it was up 17.3% year-over-year. Loss per share (EPS) in the quarter stood at $0.13, narrower than the estimated loss per share of $0.18.</p>
<p>Further, C3.ai’s gross margin was reported at 56.1%, down significantly from 66.7% in the same period last year. The company reported a negative cash flow of -$55.13 million, compared to -$8.9 million in the quarter prior.&nbsp;</p>
<p>Looking ahead, the midpoint of the startup’s Q3 revenue guidance sits at $76 million, also below the analysts’ expectations of $77.68 million. For the full fiscal year, C3.ai reiterated its revenue outlook of $307.5 million at the midpoint.</p>
<p>Commenting on its report, Gene Munster, managing partner at Deepwater Asset Management, said C3.ai is not a transformative AI company.&nbsp;</p>
<p>“We want to invest in the companies that are essentially the building blocks” in the AI space, <a aria-label="Munster said (opens in a new tab)" href="https://www.cnbc.com/video/2023/12/07/c3ai-is-not-a-transformative-ai-company-deepwater-asset-management.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Munster said</a>, but the investment firm did not include C3.ai in its Deepwater Frontier Tech ETF.&nbsp;</p>
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<h3 id="c3-ai-up-160-ytd-but-wall-street-not-as-bullish-anymore">C3.ai Up 160% YTD, But Wall Street Not As Bullish Anymore</h3>
<p>C3.ai is a cloud-based AI Software-as-a-Service (SaaS) enterprise company. It develops a set of proprietary applications known as the C3 AI Suite, which has a primary goal of helping large to medium-sized organizations to implement complex use cases across the organization.</p>
<p>As the latest AI revolution <a href="https://tokenist.com/microsoft-adds-openais-gpt-4-models-to-azure-government-services/" rel="noopener noreferrer nofollow" class="deco-link">led by OpenAI and Microsoft</a> took the tech space by storm in 2023, <a href="https://tokenist.com/these-3-ai-stocks-soared-in-may-where-are-they-now/" rel="noopener noreferrer nofollow" class="deco-link">C3.ai was among the companies that drew investors’ attention</a>. Despite its recent pullback, its shares are still up more than 160% since the start of the year. However, Wall Street’s consensus estimates on the stock are not as bullish anymore, with the average 12-month price target <a aria-label="sitting at $27.08 (opens in a new tab)" href="https://www.tradingview.com/symbols/NYSE-AI/forecast/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">sitting at $27.08</a>, implying a potential downside of more than 7%.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Since reaching its peak price in June, C3.ai embarked on a downward trajectory. Do you think the startup has the potential to get back to winning ways? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/c3-ai-shares-continue-to-plunge-after-terrible-earnings-report/">C3.ai Shares Continue to Plunge After Terrible Earnings Report</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

C3.ai Shares Continue to Plunge After Terrible Earnings Report

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