(Reuters) – C3.ai’s stock tumbled 26% on Tuesday in its biggest one-day drop since the artificial intelligence company’s 2020 IPO, with investors dumping the shares after short seller Kerrisdale Capital alleged “serious accounting and disclosure issues”.
C3.ai has “utilized highly aggressive accounting to inflate its income statement metrics in order to meet sell-side analyst estimates for revenue and certain profit metrics, and to conceal significant deterioration in its underlying operations”, Kerrisdale said in a letter to Deloitte & Touche LLP, C3.ai’s auditor.
C3.ai did not immediately respond to a request for comment about the allegations.
(Reporting by Noel Randewich; editing by Jonathan Oatis)
