Shares of artificial intelligence software company C3.ai, Inc. (AI) plummeted 9.15% on Thursday as the company's fiscal third-quarter 2024 results reflected slowing revenue growth and wider losses, missing Wall Street expectations. The disappointing performance led several analysts to cut their price targets on the stock, reflecting concerns over C3.ai's ability to sustain its high growth trajectory and achieve profitability.

For Q3 2024, C3.ai reported a 26% year-over-year increase in revenue to $98.8 million, decelerating from the previous quarter's growth rate. More alarmingly, the company posted a wider-than-expected non-GAAP loss per share of $0.12, missing analyst estimates of a $0.25 loss. C3.ai's adjusted operating loss of $23.14 million also fell short of expectations, despite marking an improvement over the prior year's quarter.

In response to the results, analysts at D.A. Davidson, KeyBanc, and Citizens JMP all lowered their price targets on C3.ai stock, with KeyBanc maintaining an Underweight rating and D.A. Davidson keeping a Neutral stance. Morgan Stanley also cut its target price, maintaining an Underweight rating on the shares.

The analyst actions reflect growing skepticism over C3.ai's ability to maintain its high growth trajectory and achieve profitability within the expected timeframe. Investors appear increasingly concerned that the company may struggle to sustain its momentum, particularly in the face of increased competition and macroeconomic headwinds.