C3.ai (NYSE: AI) stock has been on a roller-coaster ride in 2023, rising impressively in the first half of the year before pulling back significantly over the past couple of months as it became evident that the pure-play provider of enterprise artificial intelligence (AI) software is not making the most of the huge end-market opportunity on offer.
Shares of C3.ai are down 44% since the beginning of August. The company's fiscal 2024 first-quarter results, which were released last month, didn't help matters either, as its growth wasn't solid enough. Moreover, C3.ai doesn't expect to deliver a profit in the new fiscal year, which it was anticipating earlier, strengthening the bearish argument against investing in the stock considering its steep valuation.
Let's take a closer look at the reasons why an investment in C3.ai may not be a good idea right now before moving on to the potential reasons why it could go on a bull run in the future.
Source Fool.com