Artificial intelligence (AI) applications company C3.ai (AI -11.09%) sold off 11.2% through 10:50 a.m. ET this morning after KeyBanc analyst Eric Heath downgraded the stock from sector weight to underweight -- which is to say, from hold to sell.
C3.ai Inc. was downgraded to underweight by KeyBanc Capital Markets Thursday, with the analyst firm citing concerns about the enterprise software company's subscription revenue growth.
Artificial intelligence (AI) has been one of the hottest trends in the technology sector over the past couple of years, and that's not surprising as this disruptive technology has been positively impacting multiple companies across several industries.
C3.ai (AI 3.16%) was one of the first enterprise artificial intelligence (AI) companies in the world when it was founded in 2009. It has developed over 100 turnkey and customizable applications, which are used by businesses in 19 different industries to speed up their adoption of AI.
C3.ai (AI 3.16%) was one of the market's hottest tech IPOs when it went public four years ago. The enterprise artificial intelligence (AI) software provider went public at $42 a share, and its stock more than quadrupled to a record high of $177.47 in less than a month.
C3.ai (AI 3.16%) shares bounced around after the enterprise artificial intelligence (AI) software company reported its latest quarterly results. The action in the stock likely confused some investors, as the stock soared in after-hours trading immediately after its report, only to open the next morning in negative territory.
Recently, Zacks.com users have been paying close attention to C3.ai (AI). This makes it worthwhile to examine what the stock has in store.
Shares of C3.ai (AI 2.25%) are currently down 6.4% since the company's latest earnings report on Monday, Dec. 9. The artificial intelligence (AI) software company posted another strong quarter of growth, with revenue up 29% year over year.
C3.ai's growth accelerated in the second quarter, but customer concentration, competitive positioning and large losses remain points of concern. The Microsoft partnership could boost growth, but I tend to think any benefit will be fairly incremental. The boost provided by generative AI and C3.ai's business model transition appear to be peaking, meaning growth is likely to stabilize in coming quarters.
C3.ai (AI -7.10%) stock is sinking in Wednesday's trading. The company's share price was down 8.1% as of 11 a.m.
Artificial intelligence stocks are booming, but only one can be the better stock in this comparison.
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