What's Going On With C3.ai Stock?

C3.Ai Inc AI shares are trading lower Thursday morning. The stock initially traded higher late Wednesday before pulling back after the company reported better-than-expected financial results and issued mixed guidance.

Q3 Results: C3.ai said fiscal second-quarter revenue increased 7% year-over-year to $62.41 million, which beat average analyst estimates of $60.86 million, according to Benzinga Pro. The company reported a quarterly net loss of 11 cents per share, which beat estimates for a loss of 16 cents per share.

"We made substantial progress ramping our consumption-based sales motion effort, which has been well received by our customers, partners, and sales organization. We expect consumption-based sales will be a substantial contributor to growth in forthcoming quarters," said Thomas Siebel, CEO of C3.ai.

Outlook: C3.ai sees fiscal third-quarter revenue in a range of $63 million to $65 million versus estimates of $66.79 million. The company expects full-year revenue to be between $255 million and $270 million versus estimates of $260.83 million. 

Analyst Assessment:

• Piper Sandler analyst Arvind Ramnani maintained C3.ai with a Neutral and lowered the price target from $14 to $13.
• JMP Securities analyst Patrick Walravens maintained C3.ai with a Market Outperform and lowered the price target from $25 to $19.

See Also: US Stocks Priming For Fidgety Start Amid Persisting Recession Fears; China & Casino Stocks, GameStop, Costco In Focus

AI Price Action: C3.ai shares initially surged on the earnings release before pulling back.

The stock was down 1% at $11.86 Thursday morning, according to Benzinga Pro.

Photo: Lukas from Pixabay.