“The company reported progress towards deploying generative AI technology within its platform, but how this will translate to revenue upside remains to be seen.” “Despite AI optimism, we are hearing from our experts that generative AI is unlikely to represent a significant revenue-generating opportunity for the company and more likely represents a means for augmenting the user experience and searchability of the current platform,” Jordan Berger, an analyst at Third Bridge, wrote in a brief note to clients. Initial comments from one analyst regarding C3.ai’s results summed up Wall Street’s view at the moment, and explained the big letdown among investors. ![]() Investors likely had outsize expectations heading into the results after bidding up software stocks in the past month - the iShares Expanded Tech Software Sector ETFĮnjoyed its best month since 2020, gaining 10.6% in May.ĭon’t miss: Did Nvidia just help create an AI-fueled stock bubble? ![]() Those companies largely beat expectations both for results and guidance with their reports, but did not provide anywhere near the level of Nvidia’s audacious forecast. +2.76% shares lost nearly 6% and Okta Inc.’s stock 1.17% saw shares fall nearly 12% Salesforce Inc. +2.13% fell 14% following soft revenue guidance cybersecurity company CrowdStrike Holdings Inc. +0.68% prediction of record revenue - in part fueled from AI - led to strong gains for other companies also betting on the technology last week, several strong earnings reports from software companies still led to big declines in after-hours trading Wednesday.
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