Salesforce's Operating Margin

And, Snowflake's "strong execution."

Today is Thursday, November 30, 2023.

The Early Bird Index today is 60.32.

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Salesforce's Operating Margin

Salesforce (Nasdaq: CRM) surged by 8.75% in after-hours trading on Wednesday after the company produced another solid financial earnings report.

Financials: Salesforce reported earnings of $2.11 per share in the past quarter, which was better than expected. Revenue of $8.72 billion was in line and expected.

Quote: “We're now the third largest enterprise software company by revenue.” - CEO Marc Benioff.

Outlook: The software giant also upped its outlook, raising its full-year operating margin guidance to 14.5%.

Background: Salesforce has been focused on cutting costs in the past year, which included slashing jobs and other expenses.

Stock Price: Salesforce is up 70% in 2023, but still down 25% from its all-time high.

Final Thoughts: The penny-pinching strategy seems to be working…for now. Can Salesforce continue to grow its margins and make investors happy?

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Notable Earnings Today: Ulta Beauty (Nasdaq: ULTA), Kroger (NYSE: KR), Marvell (Nasdaq: MRVL), Zumiez (Nasdaq: ZUMZ), Toronto-Dominion Bank (NYSE: TD), Academy Sports + Outdoors (Nasdaq: ASO), UiPath (NYSE: PATH), Big Lots (NYSE: BIG), Dell (NYSE: DELL), Build-A-Bear Workshop (NYSE: BBW), American Woodmark (Nasdaq: AMWD), Frontline (NYSE: FRO), Ambarella (Nasdaq: AMBA), Titan Machinery (Nasdaq: TITN), Royal Bank of Canada (NYSE: RY), PagerDuty (NYSE: PD), Cracker Barrel (Nasdaq: CBRL), Domo (Nasdaq: DOMO), BRP (Nasdaq: DOOO), Tillys (NYSE: TLYS), Samsara (NYSE: IOT).

Notable IPOs Today: Quetta Acquisition Corporation Common Stock (Nasdaq: QETA).

Notable Equity Crowdfunding Campaigns Ending Today: Pepper Bru (Honeycomb), COPYTRACK (Netcapital), Edaphic Solutions (Honeycomb), Weaver Outdoors (Honeycomb), Optimus Storage Network (ChainRaise), The Honeybee Collective (Mainvest), et Oliva (Honeycomb), Sista’s Breakfast Bar (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Core PCE Price Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Pending Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Snowflake's “Strong Execution”

Cloud company Snowflake (NYSE: SNOW) jumped 7.60% in after-hours trading on Wednesday thanks to strong financial earnings results.

Financials: Snowflake reported earnings of 25 cents per share in the past quarter and revenue of $734.2 million; both were better than expected.

Quote: “These results reflect strong execution in a broadly stabilizing macro environment.” - Frank Slootman, Chairman.

Outlook: After growing revenue by over 30% in the past quarter, Snowflake expects similar growth in the current quarter.

Stock Price: Snowflake is up 29% this year, with most of the rally coming in November.

Final Thoughts: For months, analysts claimed that the cloud business was slowing down. Well, Snowflake proved them wrong and continues to grow.

Pure Storage Falls Due to Bad Guidance

Pure Storage (NYSE PSTG) reported better-than-expected financial earnings on Wednesday, but the stock fell by 14.74% in after-hours trading due to disappointing guidance from the data storage company.

Final Thoughts: The stock was up 39% this year before this earnings report. Now, there are questions about the company’s current quarter.

Trends to Watch

Potential Healthcare Powerhouse: Cigna, Humana in Talks for Blockbuster Merger (The Wall Street Journal)

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