C3.ai stock was downgraded Thursday by an analyst who cited an "unfavorable risk/reward." The company's shares crashed in morning trades.
KeyBanc analyst Eric Heath cut C3.ai's rating to underweight with a 29 price target. He told clients in a note that "consensus FY26/FY27 revenue estimates may be too high considering subscription revenue growth excluding up-front license has moderated to -1% y/y in F2Q."
C3.ai stock fell 10.7% to close at 35.45, dropping below its 21-day average. The slide followed a steep drop Wednesday when C3-ai joined in a market sell-off.
The declines underline a reversal for the company's shares.
C3.ai soared early last week after the company beat Wall Street's revenue expectations.
C3.ai, considered a major AI enterprise software company, has seen its stock rise more than 20% this year.
But the stock is on track to post back-to-back weekly losses. AI stock still holds a high Relative Strength Rating of 94 though, according to IBD MarketSurge.
