C3.ai (AI) Downgraded to Market Perform by Northland-Here's What Went Wrong

C3.ai, Inc. (NYSE:AI) is one of the Trending AI Stocks on Wall Street. On August 12, Northland analyst Mike Latimore downgraded the stock from Outperform to Market Perform with a price target of $17.00.

The rating downgrade comes after the company announced preliminary revenue and subscription estimates that came in lower than the firm’s forecasts.

The miss comes “at a time of strong enterprise AI demand”, the analysts noted. Theey also told investors that it is downgrading the stock until the company gets closer to profitable growth.

“C3.ai announced preliminary results that not only missed our revenue estimates, but also came in lower than our subscription estimates, which are supposed to be relatively visible on a quarterly basis. The miss happens at a time of strong enterprise AI demand. The company announced a reorganization too. Cash is healthy at $712 million. Downgrading to Market Perform.”

C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.

While we acknowledge the potential of AI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks Investors Are Watching Closely and 10 AI Stocks Analysts Are Watching Closely.

Disclosure: None.