Posted 12/28/2023, 11:46:00 AM
C3.ai Share Price Crashes Over 80% as Revenue Growth Stalls and Losses Mount After Overhyped IPO
- C3.ai stock soared after its IPO in late 2020, reaching a peak price of $177, but has since crashed to around $29 per share today due to slowing revenue growth and ongoing losses
- Revenue growth slowed from 71% in fiscal 2020 to just 6% in fiscal 2023, missing forecasts and leading to a share price plunge
- The stock was initially bid up to a very high valuation of over 90 times fiscal 2021 revenue, which proved unsustainable
- C3 faces customer concentration risk with 30% of revenue from a Baker Hughes joint venture expiring in 2025
- The shift to a usage-based pricing model likely cannibalized higher-value subscriptions, while increased investment in new AI products raised concerns