Core Viewpoint - C3.ai has underperformed in the AI sector, with its stock down approximately 22% over the past year and around 86% from all-time highs, primarily due to struggles in growth and profitability [1][2]. Company Performance - C3.ai has been a prominent name in the AI space, branding itself as an AI enterprise software company with significant partnerships, including clients like energy giants and the U.S. Air Force [4]. - The company generated $389 million in revenue over the last 12 months, which is significantly lower compared to its quasi-competitor Palantir Technologies, which reported $3.11 billion in revenue during the same period [5][6]. - C3.ai's revenue growth rate was 26% year over year, lagging behind Palantir's 39% growth [6]. Profitability Concerns - C3.ai reported an operating loss of $324 million last fiscal year, with stock-based compensation accounting for approximately 60% of its total revenue, raising sustainability concerns [9][10]. - The company has a bloated expense structure, which is hindering its ability to scale and achieve profitability despite revenue growth [8][10]. Future Outlook - C3.ai's business model, which relies on custom-built software solutions, appears non-scalable, leading to worsening operating losses since going public [12]. - The company has a high price-to-sales (P/S) ratio of 8.5, significantly above the S&P 500 average, coupled with deeply negative operating margins and no history of profitability [13]. - Given the high valuation, substantial losses, and slower revenue growth compared to peers, C3.ai is viewed as a poor investment choice in the current market environment [14].