Shortly after 3 p.m. EST, more than 10M shares had changed hands, more than twice the average daily volume of just over 3.1M shares.
On Thursday, shares fell more than 20% following the results, which prompted several Wall Street analysts to question the company’s business model.
JMP Securities analyst Patrick Walravens, who rates C3.ai (AI) shares market outperform, noted that the performance of its shares have been “extremely disappointing,” while also noting deals were pushed out from the fourth-quarter. Walravens also noted that “lower-than-expected” revenue performance obligations, or RPO, of $477.4M, compared to estimates of $489.2M, up 62% year-over-year compared to 90% growth in the previous quarter highlight worries over slowing sales.
Morgan Stanley analyst Sanjit Singh called out the fact that the “lumpiness” in C3.ai’s (AI) business is still a challenge and concerns about deals being pushed into fiscal 2023 “are signs of tougher spend [environment].”
“Lowering [fiscal 2023 revenue] growth outlook shows that [management] is being proactive about de-risking estimates, but a lumpy model + an uncertain macro make it tougher to assess risk/reward in the [near-term],” Singh added.
In March, investment firm Morgan Stanley lowered its price target on the C3.ai (AI) to $20 from $31, while maintaining its underweight rating on the stock.