C3.ai, an artificial intelligence company (AI), recently secured a multiyear contract from the U.S. Department of Defense (DoD). It has been expanding its reach across many industries in order to improve its market position. However, shares have fallen in value over the past year. They recently reached their 52-week low following a disappointing quarterly report. So, is the stock an ideal addition now to one’s portfolio? Let’s discuss.Artificial intelligence-focused software company C3.ai, Inc. (AI) offers software-as-a-service applications for enterprises. Redwood, Calif.-based software company C3.ai, Inc. (NYSE:), recently signed a five-year Production-Other Transaction Agreement (DoD) with the U.S. Department of Defense. “We are thrilled to have been selected for these important initiatives and look forward to expanding our work and finding new ways to better serve the U.S. federal government,” said Thomas M. Siebel, CEO of C3 AI. AI expanded its enterprise AI production in several sectors and innovated with C3 AI Data Vision delivery.

AI shares have lost 74.1% and 75.8% respectively over the last year. Over the past month, the stock has slumped 27% to close yesterday’s trading session at $32.35. A large insider sales and many other factors triggered the wider sell-off in November. Thomas Siebel, the CEO, sold 615,488 shares, at prices of $46.96 to $50.20, for a total sale amounting to $29762,880.

The stock plunged 17% on publication, even though it beat consensus estimates for its most recent quarter and raised its guidance. And the company’s bottom line remains bleak. Its non-GAAP net loss per share came in at $0.23, versus analysts’ expectations of $0.28. On December 2, the stock dropped to $27.52 at 52 weeks, after the company published its earnings report. Bank of America (NYSE.) downgraded the stock to Underperform following disappointing subscription revenues, and a decline in remaining performance obligations. Wedbush’s price target was lowered to $45, from $70. J.P. Morgan analyst Mark Murphy decreased his price target to $43 instead of $53, while keeping an Underweight rating. According to some U.S. software analysts, the company’s losses could widen further, and it might take some time for the company to hit its breakeven point and improve margins.

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