C3.ai (NYSE: AI) stock has set the market ablaze in 2023 with a massive return of 328% year to date, but a closer look at the company's business suggests the stock may have gotten ahead of itself thanks to the hype around artificial intelligence (AI).

Multiple red flags have been raised about C3.ai this year. From the company's sluggish growth and customer concentration to allegations of accounting fraud and its prohibitively high valuation, there are a number of reasons why investors may want to stay away from this high-flying stock right now.

C3.ai stock is trading at a whopping 18 times sales and delivered revenue growth of just 5.6% to $267 million in the recently concluded fiscal 2023. Additionally, the company gets nearly a third of its revenue from Baker Hughes. This relationship formed the basis of an attack by short-seller Kerrisdale Capital, which accused C3.ai of accounting irregularities a couple of months ago.

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Source Fool.com