Shares of artificial intelligence (AI)-led marketing software firm Yext Inc (NYSE:YEXT) fell despite the firm posting second-quarter earnings that matched expectations as investors become more choosy with which AI-related stocks to back.
Yext shares were down 20.5% at US$7.22 shortly after the opening bell on Thursday, down from its year-to-date high of about $13 in June.
For the second quarter of fiscal 2024, which ended July 31, 2023, Yext reported earnings per share (EPS) of $0.06 on revenue of $102.6 million.
Wall Street analysts, on average, had expected EPS of $0.07 on revenue of $102.2 million, according to Zacks Consensus Estimate.
The company also raised its full-year fiscal 2024 guidance, forecasting revenue in the range of $405 to $407 million and earnings per share between $0.29 to $0.30 compared to its prior expectations for revenue and earnings of $404 to $407 million and $0.28 to $0.29, respectively.
Yext’s in-line results and raised guidance, however, left shareholders feeling underwhelmed considering all the hype around AI stocks this year.
Investors across the board appear to be becoming pickier around which AI stocks to support, with C3.ai shares also plummeting about 17% on Thursday morning after the company upped its full-year loss forecast.
Contact the author at emily.jarvie@proactiveinvestors.com
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