Shares of technology company C3.ai (AI 0.43%) have cratered 59% in the past 12 months as the business has struggled to deliver strong growth. While it has well over 100 artificial intelligence (AI) turnkey solutions for enterprises, its sales have been declining in recent quarters.
Last year, the company's CEO and founder, Thomas Siebel, announced he was stepping down due to health reasons. Stephen Ehikian took over effective Sept. 1, 2025. Things haven't improved for the business since then, and C3.ai was even considering a sale at one point. Recently, however, the AI company has announced that Siebel has returned as CEO. Could Siebel, who in the past had been key in the company's sales process, help the business turn things around?
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C3.ai's struggles are reflected in its poor growth
There's little mystery into why C3.ai's stock has struggled in recent years, and that's because the company, which is involved in AI solutions, hasn't been growing. At a time when demand for seeming all things related to AI has been taking off, C3.ai's business has been struggling, which is a deeply troubling sign.
AI Revenue (Quarterly YoY Growth) data by YCharts
The company released preliminary fourth-quarter results on May 12, with revenue totaling $51.6 million for the period ending April 30. That's a massive decline from the $108.7 million it generated a year ago. Last year, when the company's sales began to fall, Siebel says that health issues prevented him from being involved in the sales process as much as he would have normally been in the past, and he believes that was a reason for the company's poor performance.
Now, however, with Siebel back (as of May 8) and his health issues having improved, there's renewed hope that the company may potentially be able to deliver stronger growth numbers in upcoming quarters.
NYSE: AI
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Why the stock may still be too risky to buy right now
Although C3.ai stock has taken a beating and may look cheap these days, with a market cap of around $1.4 billion, there's still considerable risk with the stock. In addition to a lack of growth, the company has remained unprofitable, and that was a problem even under Siebel. In a hotly contested AI market where companies have many types of solutions to choose from, C3.ai needs to prove its products and services are in high demand and that the business has a path to profitability.
Siebel returning may help invigorate the business, but that doesn't guarantee that the company will be on a much stronger trajectory. C3.ai has a lot to prove, and until it can show that it's a top growth stock with stronger financials, I'd avoid it given the risk that it continues to possess.
