Salesforce's Unexpected Exit
Photo by Marten Bjork / Unsplash

Salesforce's Unexpected Exit

And, Snowflake sees slower growth.

Steven Lerner
Steven Lerner

Today is Thursday, December 1, 2022.

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Salesforce's Unexpected Exit

Investors were shocked to learn that Bret Taylor will soon step down as Vice Chair and Co-CEO of Salesforce (NYSE: CRM), which sent the stock down 6.46% in after-hours trading on Wednesday.

Financials: Salesforce, which also announced its financial results on Wednesday, reported earnings of $1.40 per share and revenue of $7.48 billion; both were better than expected.

Goodbye: The announced departure of Taylor was sudden and unexpected. It marks the second time since 2020 that Chair and CEO Marc Benioff lost a co-CEO.

Stock Price: Salesforce's stock is down 37% this year but is basically flat in the last 30 days.

Final Thoughts: Despite the positive financial results, Salesforce dropped because Taylor announced that he was leaving. It means that the future of Salesforce is more uncertain, even though the overall cloud sector is still solid.


Notables

Notable Earnings Today: Dollar General (NYSE: DG), ChargePoint (NYSE: CHPT), Kroger (NYSE: KR), Ulta Beauty (Nasdaq: ULTA), Big Lots (NYSE: BIG), Marvell Technology (Nasdaq: MRVL), Toronto-Dominion Bank (NYSE: TD), Zscaler (Nasdaq: ZS), Veeva Systems (NYSE: VEEV), Designer Brands (NYSE: DBI), UiPath (NYSE: PATH), CIBC (NYSE: CM), Ambarella (Nasdaq: AMBA), Lands’ End (Nasdaq: LE), Smartsheet (NYSE: SMAR), Duluth Holdings (Nasdaq: DLTH), Asana (NYSE: ASAN), Secureworks (Nasdaq: SCWX), Tilly’s (NYSE: TLYS), American Outdoor Brands (Nasdaq: AOUT), G-III Apparel (Nasdaq: GIII), Li Auto (Nasdaq: LI), Patterson Companies (Nasdaq: PDCO).

Notable IPOs Today: Adamas One Corp. Common Stock (Nasdaq: JEWL).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), PCE Price index / Core PCE Price index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI (10:00 a.m. ET), Construction spending (10:00 a.m. ET).


Snowflake’s Slower Growth

A mixed bag of financial results sent shares of Snowflake (NYSE: SNOW) down 5.26% in after-hours trading on Wednesday.

Financial: Snowflake reported earnings of 11 cents per share and revenue of $557 million; both were better than expected.

Slower Growth: Revenue grew 67% year-over-year, but that was lower than in previous quarters. This suggests that growth may have slowed down.

Outlook: Snowflake also expects revenue for the current quarter to be between $535 million and $540 million, which was below estimates.

Stock Price: Snowflake’s stock is down 56% this year, including a 10% drop in the last 30 days.

Final Thoughts: Slower growth and a poor outlook were bad for Snowflake. Some investors still believe in Snowflake’s long-term potential, but others are starting to lose faith in the once-promising tech stock.


Costco’s E-Commerce Sales Drop

Costco Wholesale (Nasdaq: COST) reported a 10% drop in e-commerce sales on Wednesday, resulting in a 2.92% decline in the stock price during after-hours trading.

Final Thoughts: Overall sales were positive, although slower than expected. The stock is down nearly 5% this year but is up over 7% in the last 30 days.


History Repeats Itself: Bitcoin Correlation With the Dollar Index Turns Negative, Again (CoinDesk)

Nothing Below About It: Five Below rallies 5% after quarterly beat, above-consensus guidance (MarketWatch)

A November to Remember: Stocks Gain for Second Month in a Row; Dow Exits Bear Market (The Wall Street Journal)

Can’t Enter: Delta is making its airport lounges more exclusive (The Washington Post)

No Delivery: DoorDash cuts 1,250 jobs to control ballooning costs (Reuters)


 
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