Today is Thursday, September 22, 2022.
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Salesforce's $50B Revenue Goal
Shares of Salesforce (NYSE: CRM) grew 1.27% in after-hours trading on Wednesday after the technology giant said that it is setting a $50 billion revenue target for 2026.
Details: The company made the announcement during its Dreamforce Investor Day on Wednesday. The $50 billion target goal represents an operating margin of over 25%. Salesforce is also projecting revenue of $30.9 billion to $31 billion for this year.
Current State: While the company also sees a foreign exchange headwind of about $2 billion for 2026, Salesforce is rolling out a $10 billion share buyback program to help with the stock price.
Stock Price: Salesforce’s stock price is down 42% this year, including a 16% drop in the last 30 days.
Final Thoughts: The tech sector has been bleeding this year, but Salesforce sees an ambitious path forward where it can grow revenue.
Notable Earnings Today: Costco Wholesale (Nasdaq: COST), Darden Restaurants (NYSE: DRI), Accenture (NYSE: ACN), FedEx (NYSE: FDX), FactSet (NYSE: FDS), CalAmp (Nasdaq: CAMP), Manchester United (NYSE: MANU), Ibex (Nasdaq: IBEX), AAR Corp (NYSE: AIR), Tritium (Nasdaq: DCFC), Dynagas LNG Partners (NYSE: DLNG), Research Solutions (Nasdaq: RSS).
Notable IPOs Today: Alopexx, Inc. (Nasdaq: ALPX).
Notable Equity Crowdfunding Campaigns Ending Today: Hydro Wind Energy (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Current Account Deficit (8;30 a.m. ET).
Lennar's Strong Balance Sheet
Shares of Lennar (NYSE: LEN) ticked up 0.83% in after-hours trading on Wednesday after the home construction company posted mixed financial earnings results.
Financials: Lennar reported earnings of $5.18 per share, which was better than expected. But the company’s revenue of $8.9 billion was lower than expected.
The Good: Deliveries shot up 13% while total revenues climbed 29%. Gross margins on home sales improved 190 basis points as Lennar said that its balance sheet “has never been in a stronger position than it is today.”
The Bad: New orders decreased 12% and the dollar value for new orders dropped 11%. Lennar said that supply chain constraints are improving but continue to limit deliveries.
Quote: “Sales have clearly been impacted by rising interest rates, but there remains a significant national shortage of housing, especially workforce housing, and demand remains strong as we navigate the rebalance between price and interest rates.” - Stuart Miller, Executive Chairman of Lennar.
Stock Price: Lennar’s stock is down 32% this year, including a 7% drop in the last 30 days.
Final Thoughts: Rising rates continue to hurt the housing market, including Lennar and other companies. There is a comeback potential if rates stabilize in the future.
Equity Crowdfunding Spotlight: Upbounders
Briefly describe your business. Upbounders® puzzles and games cultivate belonging through play. Sold in retailers like Target and Nordstrom, they are making it easier to find quality screen-free toys that represent cultural and ethnic differences accurately, clearly, and with joy!
What are the terms of the investment for your campaign? Purchase UPBX Small Business Bonds™ on The SMBX. The bonds start as low as $10 and when the raise closes, investors will receive their monthly investments paid back at 9.5% each month over a 5-year period.
What makes your startup special? Upbounders® toys demonstrably meet the standards of major retailers, with a further runway in sectors like education and behavioral health. The company's design process, led by a diverse team that reflects the target market, is unmatched.
Trends to Watch
Release the Kraken: Kraken’s Jesse Powell to Step Down as CEO of Crypto Exchange (CoinDesk)
All-Around Blame: FedEx’s bleak warning could reflect global economy − and company’s own shortcomings (CNBC)
Buried Treasure: Most Treasury Yields Fall After Fed Raises Rates and Projections (Bloomberg)
Unlike: Meta Quietly Reduces Staff in Cost-Cutting Push (The Wall Street Journal)
From Videos to Music: Warner Music names ex-YouTube executive Robert Kyncl as new chief (Financial Times)
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