Why C3.ai Stock Plummeted Today

Today, shares of C3.ai (AI) took a significant tumble following the announcement of a significant management overhaul. By the end of trading, the company’s stock had dropped by 10.8%.

Today, C3.ai announced that their CEO, Tom Siebel, would be stepping down, and they are currently in the process of finding a new chief executive. This news has caused the company’s stock to drop by around 24.5% during today’s trading in 2025.

C3.ai stock sank following news of Siebel’s exit

Today, C3.ai issued a press statement revealing that they have initiated the search for a new CEO, as Tom Siebel is stepping down due to health concerns. This year, Siebel was diagnosed with an autoimmune disease and has been experiencing vision problems, which necessitates his departure from his leadership position at the company he founded in 2009.

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What’s next for C3.ai?

Today, Wedbush Morgan released updated analysis for C3.ai. They believe that the departure of Siebel from his CEO position is more detrimental than beneficial, potentially increasing the likelihood of the company being acquired within the next 3 to 12 months. Despite this viewpoint, they continue to recommend buying the stock and have set a one-year price target at $35 per share. This target suggests a potential increase of around 35% compared to the current closing value of the stock.

In 2025, while numerous artificial intelligence (AI) stocks experienced robust growth, C3.ai encountered notable declines in trading. The company’s sales grew by approximately 36% compared to the previous year, reaching $108.7 million in the last quarter of its fiscal year ending April 30. However, the performance of its shares has not kept pace with other prominent AI companies because of concerns about profitability.

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2025-07-25 03:51