Since its IPO, it’s the bears that have been most vocal about this AI stock.
Artificial intelligence (AI) stocks may be all the rage right now, but it’s not as if they weren’t on investors’ radars a few years ago as well. C3.ai (AI 3.50%), for example, debuted in the public market with its initial public offering (IPO) in December 2020. While the AI enterprise software stock lost more than 7% on its first day of trading, it quickly rebounded and soared 50% through the remaining days of 2020.
But investors who have had the resolve to hold onto shares of C3.ai since its IPO haven’t benefited from the recent ebullience for AI stocks. In fact, there’s a long way to go before early shareholders can consider their C3.ai investments profitable.
Since 2021, it’s all been downhill
In its early days as a publicly traded stock, C3.ai achieved its all-time high. On Dec. 22, 2020, C3.ai stock closed at $177.47 — a feat that it hasn’t accomplished again. The following day, it climbed to an intraday high of $183.90. Never since these days has the stock risen so high. While the company has grown revenue, its net losses have grown steeper, and there has been negative operational cash flows — financial trends that have led investors to punish the stock.
AI Revenue (Annual) data by YCharts.
Early investors in C3.ai have faced steep losses in their initial investments, with shares falling nearly 74% since their first day of trading. If you’re celebrating your three-year anniversary of owning C3.ai stock after starting a position with $10,000, your loss would be a bit less painful; however, you’d still have just $3,913 remaining from your initial investment.
Is buying this artificial intelligence stock a smart move right now?
Smart investors know that enduring volatility is part and parcel of investing in growth stocks like C3.ai. Those considering C3.ai as a way to gain AI exposure, therefore, shouldn’t dismiss the stock because of its previous performance — especially since there are reasons to suspect the stock can soar again. Yet those who are more cautious may want to consider other leading AI stocks instead.