C3.ai, Inc. (AI), a leading provider of enterprise AI solutions, saw its stock soar 5.61% in the pre-market session on Friday. The rally comes as the company's growth rate has been accelerating in recent quarters, driven by the increasing demand for AI technologies.
According to reports, C3.ai's revenue is projected to grow by around 24% year-over-year in the recently completed quarter. This marks a further acceleration from the previous quarter, fueling optimism among investors about the company's prospects in the burgeoning AI market.
However, the company's inability to achieve profitability remains a significant concern. Despite the impressive revenue growth, C3.ai continues to grapple with significant losses, casting doubt on the sustainability of its business model. As the company prepares to report its fiscal 2025 second-quarter earnings in early December, investors will closely scrutinize its progress towards profitability.
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