C3.ai, a once-hyped technology stock, is now facing slow growth and financial losses, making it an unattractive investment option despite its more reasonable valuation. Since its debut in 2020, the stock has plummeted 84%, disappointing shareholders. Competing with Palantir, C3.ai lags in revenue, highlighting its struggle in the AI market.

Specializing in AI software for enterprises, C3.ai partners with major companies like Amazon Web Services and McKinsey. However, its revenue growth pales in comparison to competitors like Palantir and Databricks. The company’s history of name changes and lack of focus, coupled with significant net losses and high spending, raise red flags for potential investors.

While C3.ai may seem comparatively cheaper with a P/S ratio of 9, its huge net losses and fierce competition in the AI market make it an unattractive investment. Shareholders are advised to steer clear of this unprofitable business, as its prospects are uncertain in a volatile sector. The company’s disappointing performance and lack of profitability do not bode well for future investors.

Read more at Nasdaq: Down 85%, Should You Buy the Dip on C3.ai Stock?