Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held C3.ai, Inc. (NYSE:AI) over the last year knows what a loser feels like. To wit the share price is down 62% in that time. We wouldn't rush to judgement on C3.ai because we don't have a long term history to look at.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

View our latest analysis for C3.ai

Because C3.ai made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

C3.ai grew its revenue by 27% over the last year. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 62% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. For us it's important to consider when you think a company will become profitable, if you're basing your valuation on revenue.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

C3.ai is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling C3.ai stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

C3.ai shareholders are down 62% for the year, even worse than the market loss of 20%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 9.6% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - C3.ai has 2 warning signs we think you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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