C3.ai CEO Tom Siebel Steps Down—What’s Next for the Stock?

C3.ai’s leadership shakeup just got real—founder Tom Siebel is handing over the reins. Markets hate uncertainty, but is this a buying opportunity or a red flag?

Siebel built C3.ai into an enterprise AI powerhouse, but now Wall Street’s asking: Can the stock survive its founder’s exit? AI hype’s still pumping—just don’t mention the burn rate.

Here’s the kicker: CEO transitions sink stocks 60% of the time (because finance loves drama). But C3.ai’s tech stack? Still gold. The real question: Will the new boss prioritize profits—or keep burning cash like a crypto degens chasing the next meme coin?

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A search for a new CEO has begun

When a CEO steps down unexpectedly and without a succession plan in place, investors are left waiting and wondering when and who will be in charge of the business. In the press release announcing Siebel's departure, the company says it will be using an unnamed "internationally renowned search firm" to find a replacement.

Siebel founded the company in 2009 and has propelled it to what it is today, a robust business offering over 130 turnkey AI applications to a wide range of industries. In its most recent fiscal year, which ended on April 30, revenue totaled $389 million, an increase of 54% over the past three years.

Despite that growth, however, investors have likely not been pleased with the stock's performance since going public in late 2020; shares of C3.ai have nosedived by more than 75% since then.

Could a new CEO help revive the stock?

At times, there has been a lot of hope and excitement around the company, particularly as investors have been eager to invest in up-and-coming businesses involved with AI. But with lackluster financials, many investors have remained hesitant. Despite all the excitement surrounding the technology, and even having AI as its ticker symbol, the stock hasn't lived up to expectations.

Under a new CEO, the stock could turn things around if the company makes a real effort toward improving its bottom line. While revenue has been rising in recent years, it's unfortunately not any closer to hitting breakeven. In its most recent fiscal year, its net loss totaled $289 million, up 50% in three years, almost in unison with the top line.

A CEO who is devoted to cutting costs and improving margins could be just what the business needs to get investors excited again.

Should you invest in C3.ai right now?

C3.ai stock is down over 30% this year, and while it may seem like a cheap buy, there are still too many question marks around the business to determine whether it may be worth investing in today. A wait-and-see approach looks to be most appropriate approach given the circumstances. Even if the new CEO is committed to improving the bottom line and growing the business and says all the right things, investors may still want to hold off on a decision until they see how the company performs after a couple of quarters under the new leadership.

There are many AI stocks to invest in these days, and C3.ai still hasn't proved itself to be the real deal. The departure of Siebel adds some uncertainty for the business and the stock, but I WOULD argue that it's not in any more trouble than it was a few months ago.

It still needs to prove to investors that it has a path to profitability, and that it's more than just a speculative AI investment. Until that changes, it's likely going to remain a highly volatile and risky stock.