C3 AI Stock Crashes 26% After CEO Blasts Preliminary Sales Data as “Completely Unacceptable”

Bargain hunters and dip scoopers were already on it — the shares were up 1.5% ahead of the opening bell Tuesday. But is it really time to buy?

🔥 Big Drop = Big Opportunity?

• C3.ai stock AI tanked 26% Monday after the artificial intelligence software company dropped a brutal pre-announcement late Friday, slashing revenue guidance to about $70.3 million — a whopping 33% below its prior forecast.
• For context, the company reported $87.2 million in revenue in the same quarter last year, meaning growth has gone backward in a market where AI is supposed to be an unstoppable rocket ship moving at breakneck speed.
• By Tuesday morning, the stock was showing signs of dip-buying optimism, up 1.5% in pre-market trading, but sentiment remains shaky with the ticker still lower by more than half this year.

❌ CEO: “Completely Unacceptable”

• CEO Thomas Siebel didn’t sugarcoat it, calling the sales results “completely unacceptable” in a statement that landed with the same force as the sell-off itself.
• Siebel blamed the shortfall on two main factors: a) The “disruptive effect” of a corporate reorganization (board is looking for his replacement). b) His ongoing health issues, which may have limited his ability to manage operations in recent months.
• He pledged changes — “I am confident the company is positioned to accelerate going forward” — but the blunt language suggested management knows it’s lost serious credibility with investors.

🗻 The Losses Are Mounting

• The company now expects a GAAP loss from operations of $124.7 million to $124.9 million for the quarter — a massive widening from the $72.6 million loss a year earlier.
• That’s not just a deeper red ink situation — it’s a 72% bigger operating loss in an industry where many players are moving toward profitability.
• At its current share price, C3 AI’s market cap has shriveled to about $2 billion, a 52% drop year-to-date, standing in stark contrast to the AI boom that’s been minting billion-dollar gains for peers.

🤔 Is This the Bottom or a Value Trap?

• Bulls will argue the AI hype cycle isn’t over and that C3 AI’s brand name could help it bounce back.
• Bears will note that falling revenue, soaring losses, and management turmoil are a tough mix to recover from easily — especially when the CEO himself calls the quarter a disaster.
• For now, the company’s earnings call will be less about guidance and more about proving C3 AI still belongs in the AI conversation at all.