Is C3.ai Stock a Buy Now?

The popularity of artificial intelligence (AI) has turned out to be a big boon for C3.ai (NYSE: AI) investors in 2023; shares of the enterprise AI software provider have soared 266% so far this year. Those gains are outstanding considering that the company has been plagued with slow growth over the past fiscal year on account of a change in its business model.

However, C3.ai's flat revenue growth and eye-popping stock price surge have left it trading at an expensive valuation. C3.ai's sales multiple of 17 doesn't seem justifiable considering that its revenue increased just 5.6% in fiscal 2023 (ended April 30) to $267 million. That was a big drop from the 38% revenue growth the company had delivered in fiscal 2022.