Salesforce's Monster Comeback

Today is Thursday, March 2, 2023.

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Salesforce's Monster Comeback

Strong financial results from Salesforce (NYSE: CRM) gave the tech stock a 15.79% gain in after-hours trading on Wednesday.

Financials: Salesforce reported earnings of $1.68 per share in the past quarter and revenue of $8.38 billion; both were better than expected.

Quote: “We closed FY23 with operating cash flow reaching $7.1 billion, up 19% year-over-year, the highest cash flow in our company’s history, and one of the highest cash flows of any enterprise software company our size.” - Marc Benioff, Chair and CEO.

Outlook: The company expects revenue to be between $8.16 billion and $8.18 billion, which was better than expected.

Stock Price: Salesforce is down 20% in the last 12 months, including a 4% dip in the last 30 days.

Final Thoughts: It’s been a rough few months for Salesforce. There were layoffs and pressure from activist investors. With Wednesday’s financial results, there’s finally something positive about the direction of the company.

Notables

Notable Earnings Today: Broadcom (Nasdaq: AVGO), Best Buy (NYSE: BBY), Costco Wholesale (Nasdaq: COST), Macy's (NYSE: M), C3.ai (NYSE: AI), Kroger (NYSE: KR), ChargePoint (NYSE: CHPT), Bilibili (Nasdaq: BILI), Marvell Technology (Nasdaq: MRVL), Anheuser-Busch InBev (NYSE: BUD), Zscaler (Nasdaq: ZS), Burlington Stores (NYSE: BURL), Big Lots (NYSE: BIG), Nordstrom (NYSE: JWN), Portillo's (Nasdaq: PTLO), Hewlett Packard Enterprise (NYSE: HPE), Arbe Robotics (Nasdaq: ARBE), Dell (NYSE: DELL), Toronto-Dominion Bank (NYSE: TD), Victoria's Secret (NYSE; VSCO), AerCap (NYS: AER), Hormel Foods (NYSE: HRL), Six Flags (NYSE: SIX), Sprouts Farmers Market (Nasdaq: SFM), Stratasys (Nasdaq: SSYS), Utz Brands (NYSE: UTZ).

Notable IPOs Today: Opti-Harvest, Inc. (Nasdaq: OPHV), NYIAX, Inc. Common Stock (Nasdaq NYX).

Notable Equity Crowdfunding Campaigns Ending Today: MaxTracker (StartEngine), Genius Juice (Republic), Rize Up (SMBX), Swiss Precision Active (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET).

Snowflake’s Poor 2023 Outlook

Photo by Markus Spiske / Unsplash

Shares of Snowflake (NYSE: SNOW) tumbled 7.35% in after-hours trading on Wednesday after the cloud computing company posted mixed financial earnings results.

Financials: Snowflake reported earnings of 14 cents per share in the past quarter and revenue of $589 million; both were better than expected.

Details: Product revenue grew by 54% year-over-year. And the company announced a $2 billion stock buyback program, which should help with the price.

But: Snowflake expects product revenue to grow by just 40% in the current full year, which was below what analysts expected.

Final Thoughts: The stock is down 41% in the last 12 months. Snowflake still has room to grow, but the slower outlook for the current year is a bad sign for investors.