Why did C3.AI jump in in August?

Key Points

• c3.ai announced a terrible quarter in advance on August 8th.

• Additionally, CEOs and founders have health issues.

• The company appointed a new CEO in September and also revamped its sales force. However, uncertainty remains.

• I like it more than 10 shares C3.ai›

AI Software Company Stocks c3.ai (NYSE: AI) According to data from S&P Global Market Intelligence, it fell 28.2% in August.

C3.AI announced its first quarter financial results in advance, revealing that it would miss the initial guidance at a whopping 30%. Needless to say, the market was not very friendly to the news.

Where would you invest $1,000 now? Our team of analysts revealed what they believe 10 Best Stocks Buy now. Continues “

c3.ai missed badly and faces uncertainty for the future with new CEO

On August 8th, C3.AI announced in advance that it had only about $70.3 million in first quarter revenues and a adjusted (non-GAAP) operating loss of about $57.8 million. This is a massive mistake given that the initial quarter guidance was around $104.5 million in revenue and an adjusted operating loss at the midpoint of $28.5 million.

C3.AI Chairman and now former CEO Thomas Sebel noted that he had some health issues that prevented him from attending sales meetings and that he underestimated the impact of his absence on the closing deal.

As a result, C3.AI has revamped its sales organization and announced one promotion with four new recruits and one sales organization. Then, in September, when C3.AI finally reported revenue, the company announced Stephen Ehikian as the new CEO, and Siebel remains as executive chairman.

Is it possible to turnaround a 55% decrease this year?

With the huge mistakes and now the new CEO, it's no wonder C3.AI has dropped by a whopping 55% per year.

The good news is that the company still has a solid balance sheet, with no $7111 million in cash and liabilities. Additionally, the company's new CEO is a software entrepreneur who previously sold two software companies focused on AI. Salesforce (NYSE: CRM).

Therefore, c3.ai investors are not without hope. However, with a major quarterly escape and continuing operating losses, it is difficult for investors to turn the outlook for C3.AI. There are so many fluid things that remain as we should see from the sidelines for now.

Should you invest $1,000 in c3.ai now?

Consider this before purchasing stocks at c3.ai.

Motley Fool Stock Advisor The analyst team has identified what they believe 10 Best Stocks For investors to buy now…and C3.AI was not one of them. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.

When should you think about it? Netflix I created this list on December 17, 2004…If you invested $1,000 at the time of recommendation, There is $670,781! *Or when nvidia I created this list on April 15, 2005… If you invested $1,000 at the time of recommendation, There is $1,023,752! *

Now it's worth noting Stock Advisor The total average return is 1,052% – outperformance that breaks the market compared to 185% of S&P 500. Don't miss out on the latest Top 10 list available when participating Stock Advisor.

View 10 shares »

*Stock Advisor will return as of August 25, 2025

Billy Duberstein and/or his clients have no positions in any of the stocks mentioned. Motley Fool has a position and recommends Salesforce. Motley's Fool recommends c3.ai. Motley Fools have a disclosure policy.