Confluent, Inc. (NASDAQ: CFLT) experienced a massive sell-off, hitting a new low of $17.51 per share due to lower-than-expected revenue for the second quarter. Despite a 20% increase in total revenues to $282 million, the company missed analysts’ consensus forecast by 2.69%. Net loss narrowed by 8.8% to $81.95 million year-on-year.

In the first half, Confluent saw a decrease in net loss by 18.6% to $149.5 million and a 22% increase in total revenues to $553 million. The company expects subscription revenues to end between $281-$282 million and total revenues in a range of $1.105 billion to $1.11 billion for the full year.

Earnings per share for Confluent were estimated at $0.09-$0.10 in the third quarter and around $0.36 for the full year. While CFLT has potential as an investment, there are other AI stocks with greater promise for delivering higher returns and limited downside risk. For more information, see our report on the best short-term AI stock.

Read more at Yahoo Finance: Confluent (CFLT) Hits New Low on Weak Revenue Outlook