Why C3.ai Stock Sank Today
Shares of C3.ai (NYSE: AI) slipped again in today's trading, ending the week down roughly 14.6%. The artificial-intelligence software company's share price closed out Friday's daily session down 4.5%, while the S&P 500 index ended the session up roughly 0.5%, the Dow Jones Industrial Average climbed 0.6%, and the Nasdaq Composite index was flat on the day.
While the broader market saw gains Friday, and there doesn't appear to have been any business-specific news behind the sell-off for C3.ai, investors have swung back to being more cautious about growth stocks. Valuations for growth-dependent software companies soared late last week as investors bet that the Federal Reserve would move away from large interest rate hikes following a better-than-expected round of inflation data, but the bullish spurt proved to be short-lived and gave way to retracement for many companies this week.
Following explosive bullish momentum on Nov. 10 and Nov. 11 driven by the U.S. Labor Department's latest inflation data, investors appear to be reassessing the outlook on the monetary policy front. Confidence that the Fed will shift away from additional interest rate hikes seems to be slipping, and shifting sentiment led to sell-offs for C3.ai and other highly growth-dependent software stocks on Friday.
Source Fool.com
