Why Shares of C3.ai Stock Fell 27.8% in February

Core Insights - C3.ai's stock fell 27.8% in February, reflecting poor performance despite the AI market boom [1] - The company has seen a significant decline in revenue and profit margins, with a 90% drop from its post-IPO highs [1] Financial Performance - C3.ai reported revenue of $53 million last quarter, down from $99 million a year ago, indicating a nearly 50% decline [4] - The operating loss was $140 million, more than double the revenue, and free cash flow was negative $126 million over the last twelve months [5] Market Position - C3.ai is positioned similarly to Palantir Technologies, aiming to provide custom AI services to enterprises, but is struggling to attract and retain customers [3][4] - The company has a price-to-sales ratio of 4, its lowest ever, but ongoing losses and declining revenue raise concerns about its valuation [8] Competitive Landscape - Palantir, a direct competitor, reported revenue of $4.47 billion in 2025 and over $2 billion in free cash flow, highlighting a stark contrast in performance between the two companies [7]