Clearwater Analytics (CWAN) Falls 6.44% on Dismal Earnings

We recently published 10 Stocks Collapse Overnight. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best-performing stocks on Monday.

Clearwater Analytics saw its share prices decline by 6.44 percent on Monday to end at $18.45 apiece as investor sentiment remains dampened by a dismal earnings performance in the second quarter of the year, despite earning a rating upgrade from an investment company.

In an updated report, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) widened its net loss attributable to shareholders in the second quarter of the year by 5,301 percent to $23.2 million from only $430,000 in the same period last year.

Revenues were higher by 70 percent to $181.9 million from $106.79 million year-on-year.

The company also swung to a net loss of $16.5 million in the first half of the year from a net income of $1.47 million in the same comparable period. Revenues grew by 47 percent to $308.8 million from $209.5 million year-on-year.

Despite the results, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) earned a “buy” recommendation from Goldman Sachs, a revision from the “neutral” stance previously. However, it maintained its price target of $27 for the stock.

While we acknowledge the potential of CWAN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.