Can C3.ai Be a Good Contrarian Stock?

Core Viewpoint - C3.ai has struggled significantly in 2025, losing half of its value, and has disappointed investors with recent financial results and leadership changes [1][2]. Group 1: Company Performance - C3.ai's stock has been one of the worst-performing AI stocks in 2025, with a current price of $15.18, down 5.54% [3][4]. - The company reported a nearly 20% decline in revenue, dropping to $70.3 million, and an operating loss that increased from $72.6 million to $124.8 million year-over-year [7]. - Despite poor performance, the stock has shown signs of recovery, trading near pre-earnings levels, suggesting investors may believe it has bottomed out [8]. Group 2: Leadership Change - Thomas Siebel, the founder, stepped down as CEO due to health reasons, with Stephen Ehikian taking over on September 1 [2]. - Ehikian's previous experience in building companies that were acquired by larger firms is seen as a positive sign for C3.ai's future [4]. Group 3: Market Expectations - Low expectations are currently factored into C3.ai's valuation, which may allow for a positive surprise from the new CEO [6]. - A modest improvement in financial performance could significantly boost the stock price in the near future [5].