C3.ai (AI) traded down by more than 19% in recent Thursday premarket activity after multiple analyst price target cuts followed the company's fiscal Q1 results announcement.
The developer of artificial intelligence-based business software reported better-than-expected fiscal Q1 results late Wednesday but said it expects gross margins to be under pressure "due to higher mix of pilots, which carry a greater cost of revenue during the pilot phase of the customer life cycle."
"We also expect short-term pressure on our operating margin due to additional investments we are making in our business, including in our salesforce, research and development, and marketing spend," Chief Financial Officer Hitesh Lath said in a conference call, according to a Capital IQ transcript.
Wedbush on Thursday slashed its price target on C3.ai to $30 from $40, Morgan Stanley lowered it to $21 from $23, while Deutsche Bank cut the price target to $19 from $22.
Price: 18.64, Change: -4.37, Percent Change: -18.99
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