Salesforce (CRM) stock is experiencing a decline on Thursday after the firm reported first-quarter earnings on Wednesday, the cloud computing firm disappointing on its second-quarter guidance. Salesforce posted its first revenue miss in nearly two decades, compounded by its guidance. RBC Capital Markets Software Equity Analyst Rishi Jaluria joins Catalysts to discuss his outlook on the software sector.
Jaluria notes that Salesforce’s performance showed “this is a tough environment that we’re in,” referring to macro conditions for the software landscape. He highlights that with the revenue miss and disappointing guidance, Salesforce is “skating that line of no longer being a double-digit grower anymore,” causing investor concern and the subsequent stock plunge.
Jaluria observes that as companies focus on generative AI and implementing and investing in an AI approach, it is taking precedence over its cloud platform. He states, “CIOs are taking a look at their IT budgets and saying, ‘Where can we scrutinize spend, what is truly necessary, where can we reduce costs?'” He later adds, “I think that is leading to a deprioritization of migration from the cloud.”
#youtube #Salesforce #equities
About Yahoo money management:
Yahoo money management provides free stock ticker data, up-to-date news, investment mix management resources, comprehensive industry data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at money management.yahoo.com
– Download the Yahoo money management app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo money management on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/firm/yahoo-money management
Disclaimer:
If you own the YouTube channel related to this video and do not want it to be featured here, you can contact us through our contact page. We will gladly remove it without questioning your reasons.