Shares of C3.ai (NYSE: AI) turned sharply lower this week, plunging as much as 18.7%, according to data provided by S&P Global Market Intelligence. As of 1:14 p.m. ET on Thursday, the stock was still down 15.6%.

There's little question that the stock has benefited from the buzz surrounding artificial intelligence (AI) this year, but the company issued a tepid financial report after the market close on Wednesday, which took the wind out of its sails.

For its fiscal 2024 second quarter (ended Oct. 31), C3.ai generated revenue of $73.2 million, which was up 17% year over year, despite the accelerating adoption of AI. Equally as troubling was the company's gross profit margin, which plunged to 56%, down from 67% in the prior-year quarter.

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Source Fool.com