C3.ai stock plunges on narrow earnings beat, weak full-year guidance

C3.ai shares have benefited from the AI hype. But that may not be the case anymore. The AI developer's shares plunged after posting weaker-than-expected full-year guidance. Yahoo Finance Live discusses the stock's selloff.

Video transcript

BRAD SMITH: Let's also talk about artificial intelligence software developer C3.AI this morning. They reported their fourth quarter earnings after the bell Wednesday. And despite beating expectations on the top and bottom line, shares are plummeting after the company's full year revenue outlook came in shy of Wall Street estimates. Any mention of AI over the course of this earnings period, typically, has been lighter fluid for a company's shares to--

DIANE KING HALL: But not C3.AI.

BRAD SMITH: But not this one.

DIANE KING HALL: No, not C3.AI. I mean, like, again, like, you have-- you know, you had the big heavyweight like Nvidia, I mean, super heavyweight if you want to call it that--

BRAD SMITH: The chips play. Yeah.

DIANE KING HALL: Yeah, exactly. And C3.AI had been a beneficiary of being a front runner in just the AI wave. But again, that revenue outlook really dogging them. But Wedbush came out with a note regarding C3.AI and supporting-- seeing-- you know, seeing it as a good play actually and seeing C3.AI as being, you know, just judged too harshly today for these numbers.

BRAD SMITH: Yeah. Well, they had the beneficiary-- or the benefits rather of just having AI as their ticker symbol. So even as people were just googling AI stocks--

DIANE KING HALL: They're going to get that. Exactly.

BRAD SMITH: Yeah. That's good SCO on their report and picking a ticker symbol.