C3.AI stocks benefit from the AI hype. But that may not be the case anymore. The AI developer’s shares plunged after it announced a disappointing full-year outlook. Yahoo Finance Live discusses falling stock prices.
video transcript
Brad Smith: This morning we also talk about artificial intelligence software developer C3.AI. They announced their fourth-quarter earnings after Wednesday’s bell. And despite better-than-expected sales and bottom-line earnings, the company’s full-year earnings forecast has fallen short of Wall Street expectations, sending the stock plunging. Typically, during this earnings period, even though he made mention of AI, the company’s share price became illiquid.
Diane King Hall: But C3.AI is not.
Brad Smith: But this is different.
Diane King Hall: No, it’s not C3.AI. So, again, you had huge heavyweights like Nvidia, super heavyweights.
Brad Smith: Chips play. yes.
Diane King Hall: Yes, that’s right. And C3.AI has really benefited from being the frontrunner in his AI wave. But again, that earnings prospect worries them. But Mr. Wedbush published his memo on C3.AI, endorsed it, deemed it actually a good play, and considered C3.AI to have received too harsh a scrutiny for this number today. I’m here.
Brad Smith: yes. Yes, they had the benefit of introducing AI as the beneficiary, the ticker symbol. I mean, even if people were just googling his AI stock –
Diane King Hall: they’re going to get it that’s right.
Brad Smith: yes. His selection of SCO and ticker symbols in their reports is excellent.
