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significant headwinds that warrant keeping on the sidelines in this NYSE-listed firm, Citizens’ senior analyst Patrick Walravens told clients in a research note today.Following the post-earnings slump, C3.ai stock is down more than 40% versus its year-to-date high.3 Highest Rated Dividend Kings for Generations of IncomeAs Nvidia Launches New AI Laptop Chips, Should You Buy NVDA Stock?GE Aerospace Is Linking Up with Palantir. Should You Buy GE Stock Here?Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!www.barchart.comWalravens agreed that eliminating 26% of its global workforce will benefit C3.ai in terms of operating efficiency but cited a perfect storm of internal instability for downgrading the AI stock to “Market Perform.”The enterprise software company is grappling with material “near-term new business challenges,” evidenced in an alarming 46% year-on-year decline in revenue to about $53 million in the fourth quarter.Additionally, execution risk tied to its high-stakes business turnaround and the “loss of day-to-day involvement of founder and visionary Thomas M. Siebel” could make it increasingly difficult for C3 shares to recover in 2026, Walravens added.Note that C3.ai now sits decisively below all of its major moving averages (MAs), reinforcing that bears have firmly taken control across multiple timeframes.Beyond internal turmoil, Citizens cautions against buying the post-earnings dip also because the broader landscape is becoming increasingly hostile for C3 stock.Walravens highlighted a fundamental “market shift toward horizontal GenAI platforms,” where enterprises are choosing broad, integrated ecosystems over C3.ai’s niche-oriented applications. This trend is fueling intense competition from software behemoths.Microsoft (MSFT) and Salesforce (CRM) are embedding AI natively into existing workflows, while data titans like Snowflake (SNOW) and Databricks are capturing the foundational layers of the artificial intelligence stack.Against these well-capitalized horizontal platforms, C3.ai's proprietary solutions risk being marginalized as the industry consolidates around the biggest players, Walravens concluded.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,878.88 -29.98 (-0.43%)Dow 3048,977.92 -521.28 (-1.05%)Nasdaq22,668.21 -210.17 (-0.92%)Russell 20002,632.36 -44.93 (-1.68%)VIX19.86 +1.23 (+6.60%)Gold5,296.40 +102.20 (+1.97%)Trending tickersBTC-USD Bitcoin USD 65,834.68 -1,240.16 (-1.85%)ANTH.PVT Anthropic 259.14 0.00 (0.00%)WFC Wells Fargo & Company 81.45 -4.85 (-5.62%)NBIS Nebius Group N.V. 91.19 -13.69 (-13.05%)BX Blackstone Inc. 113.37 -4.58 (-3.88%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)Top economic eventsEarnings eventsMy earnings eventsEarnings events