Why Did C3.ai Stock Fall 15% in December?
C3.ai (NYSE: AI) shares fell 15.4% in December following a disappointing earnings announcement. The company reported quarterly results on Dec. 1 and beat Wall Street's estimates for both sales and net losses. However, analysts were discouraged by the software-as-a-service stock's commentary and outlook, leading to rating downgrades. The sell-off in high-valuation growth stocks thwarted C3.ai's recovery later in the month.
C3.ai's results looked great on the surface level, but there were some details investors didn't like. Revenue rose 41% to $58.3 million. Remaining performance obligations, which represent contracted revenue for future periods, increased 74%. The company's net losses were also lower than anticipated, in part because of gross margin improvement. Those are all signs of an efficient and growing business.
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Source Fool.com
