Can C3.ai Be a Good Contrarian Stock?

1 month ago 22
  • C3.ai banal has mislaid fractional its worth this year.

  • The institution reported a brutal 4th recently, with some its apical and bottommost lines looking worse.

  • It has a caller CEO who has helped a mates of businesses beryllium acquired.

  • 10 stocks we similar amended than C3.ai ›

Its ticker awesome is AI, but that doesn't mean the hype astir artificial quality has fixed the banal of C3.ai (NYSE: AI) a boost this year.

In fact, it's been 1 of the worst-performing AI stocks of 2025, losing fractional of its worth frankincense far. The tech institution has disappointed investors with unimpressive results successful caller quarters, and the unexpected departure of its CEO didn't assistance matters, either.

It's casual to spot wherefore the banal is simply a atrocious buy. But with the company's much than 130 turnkey AI applications for assorted industries and the imaginable for further AI-related maturation inactive retired there, could determination beryllium a compelling crushed to instrumentality a contrarian presumption successful the banal close now?

Futuristic representation  showing galore  ideas going done  a person's mind.

Image source: Getty Images.

Thomas Siebel is the laminitis of C3.ai, but earlier this year, helium announced helium would beryllium stepping down arsenic CEO owed to wellness reasons. Stephen Ehikian took implicit arsenic of Sept. 1, and Seibel says the caller CEO gives C3.ai, "the uncommon operation of the close person, astatine the close company, successful the close market, astatine the close time."

While it's unfortunate for Siebel to relinquish his enactment presumption of the institution helium founded, it whitethorn beryllium the champion determination for shareholders successful the agelong run. Under Siebel, the concern had grown but showed small advancement -- if immoderate -- connected the bottommost line, with seemingly nary way to profitability anytime soon.

With Ehikian, shareholders are getting a CEO who helped physique RelateIQ and Airkit.ai, which Salesforce ended up acquiring. While this doesn't mean that C3.ai volition extremity up being bought out, it's a bully motion nevertheless that Ehikian was capable to assistance physique up companies that were charismatic capable for a overmuch larger concern to privation to get them.

The bully quality is that adjacent if there's lone a humble betterment successful the company's fiscal performance, that could beryllium capable to springiness C3.ai's banal a boost successful the adjacent future.

C3.ai banal has done truthful poorly this twelvemonth and its results were truthful abysmal past 4th that debased expectations are efficaciously baked into its valuation. That means that it whitethorn not instrumentality overmuch for the company's caller CEO to astonishment Wall Street and make immoderate excitement astir the AI banal again.

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