This AI Stock's Recent Job Cuts Shouldn't Be Surprising
Shares of C3.ai (NYSE: AI) fell 4% on Monday following a Bloomberg report that the AI software company implemented a fresh round of job cuts last week. But even if you're bullish on the stock -- and noting C3.ai implemented similar job cuts only six months ago -- the news shouldn't be entirely surprising.
To be fair, Monday's decline is barely a blip in the radar given C3.ai's nearly 170% year-to-date rally -- which includes a more than 40% pullback from its 52-week high in June. As of this writing on Wednesday (Nov. 22), the stock has also nearly recouped the dip after C3.ai announced a new Generative AI offering available on the Amazon Web Services (AWS) marketplace.
Still, the report of C3.ai's job cuts raises the question: Why is an leading AI stock that's enjoying such apparent success in its niche reducing its workforce in the first place?
Source Fool.com
