Why Did C3.ai Stock Drop 16% in January?
Shares of C3.ai (NYSE: AI) dropped 15.7% in January, according to data provided by S&P Global Market Intelligence. Things were mostly quiet for the company after its disappointing earnings report in December. C3.ai is an unprofitable company with exciting growth prospects. After losing a ton of momentum coming into this year, it was the exact type of stock that struggled as investors ditched speculative growth stocks in January.
After a couple of fantastic years, growth investors are seeing the other side of the coin in recent months. Low interest rates and unprecedented macroeconomic conditions drove investor risk tolerance to historically high levels. Valuations for growth stocks hit levels that we haven't seen since the dot-com bubble. As interest rates start to climb and economic activity inches back toward normal, those trends are reversing.
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Source Fool.com
