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- Salesforce crash drags down the Dow 📉
Salesforce crash drags down the Dow 📉
Stocks continued to slip lower on Thursday thanks to a big sell off in the Dow and Nasdaq.
Adam Garcia
May 30, 2024
Good Afternoon!
Hey, everyone. It's Adam from Elite Trade Club.
I hope you had a great weekend.
Here’s what moved the market today.
Markets 📈
Stocks sank again on Thursday as a massive sell off in Salesforce [CRM -19.7%] dragged the Dow down by more than 300 points. The Nasdaq also continued its slide, while the S&P posted slimmer losses than its cohorts.
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Market-Moving News 🔎
Salesforce CEO Marc Benioff at a recent public appearance.
Salesforce Shares Plunge 20% in Worst Day Since 2004 📉
Salesforce shares closed down 20% on Thursday, marking the stock’s worst day in nearly 20 years. The last comparable drop was on July 4, 2004, when shares fell 27% shortly after the company went public.
Earnings Miss 📊
The plunge follows Salesforce's fiscal first-quarter results announcement on Wednesday, which missed Wall Street's revenue estimates for the first time since 2006.
The cloud software vendor reported an 11% increase in revenue to $9.13 billion, falling short of the $9.17 billion expected by analysts. Additionally, Salesforce provided a lighter-than-expected revenue forecast for the upcoming quarter.
Q2 Outlook 📉
For the second quarter, Salesforce projected adjusted earnings per share of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts had anticipated $2.40 in adjusted earnings per share on $9.37 billion in revenue. This guidance contributed to the negative market reaction.
Citi analysts highlighted broader macroeconomic challenges and specific execution issues within the company that factored into its poor performance. Analysts at the bank lowered their price target for CRM from $323 to $260 in response to the poor prognosis.
Market Reaction 🌐
Salesforce’s miss dragged the Dow to a 300-point loss and soured investor sentiment towards the cloud software industry. However, the outlook isn’t entirely grim, and the company could quickly right the ship when some of its long-term growth projects, such as AI-enabled advancements, come to fruition.
Top Winners and Losers 🔥
Logistics Properties [LPAI] $258.85 (+684%)
exploded suddenly after it rang the opening bell at the New York Stock Exchange for today’s trading session.
Summit Therapeutic [SMMT] $10.92 (+272%)
said ivonescimab outperformed Merck’s pembrolizumab in a Phase 3 trial against certain lung cancers.
JE Cleantech [JCSE] $1.30 (+83.1%)
filed a Form RW disclosing its withdrawal from a previously-announced registration statement.
Flyexclusive [FLYX] $5.24 (35.7%)
retreated after back-to-back rallies at the state of the holiday-shortened trading week.
Maxeon Solar Tech [MAXN] $2.03 (34.7%)
said its largest shareholder, TCL Zhongshan Renewable Energy, will invest an additional $97.5 million in the company’s debt and another $100 million in its equity.
UiPath [PATH] $12.07 (34.0%)
slashed its revenue outlook as part of its fiscal Q1 2025 earnings report.
That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback from our members!
Thanks for reading. I'll see you at the next open!
Best Regards,
— Adam G.
Elite Trade Club
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