Stock Track | C3.ai Stock Tumbles as Near-Term Profitability Concerns Weigh

Stock Track07-25

Shares of C3.ai, Inc. (AI) plunged 5.32% during intraday trading on [DATE], as investors grew concerned about the company's near-term profitability prospects. The decline came despite C3.ai's expanding relationships with major cloud providers and growing adoption of its AI solutions.

C3.ai has been deepening its ties with Amazon (AMZN), Alphabet (GOOGL), and Microsoft (MSFT), which bodes well for its long-term growth prospects. However, the company is facing near-term pressure on its gross margins due to higher costs associated with pilots and customer acquisition.

Additionally, C3.ai is making significant investments in sales, research and development, and marketing efforts, which are expected to weigh on its operating margins in the short term. The company's transition to a pay-as-you-go consumption model is also resulting in smaller transactions with shorter terms, impacting its revenue performance obligations.

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