Stock futures slide as Salesforce tumbles on revenue miss and soft guidance: Live updates
Will Salesforce's Slide Crash the Dow?
U.S. stock futures declined as Salesforce experienced a significant drop after reporting a revenue miss and issuing weak future guidance. The tech giant's shares fell around 16% in extended trading, which is set to impact the Dow Jones Industrial Average significantly at the market open. Additionally, other companies like American Eagle Outfitters also saw declines after missing revenue forecasts, contributing to a broader market downturn.
How much did Salesforce's stock price drop in after-hours trading on the day of the earnings report?
Salesforce's stock price plunged around 16% in after-hours trading on the day it reported its quarterly earnings. This significant drop occurred after the company announced a revenue miss for the fiscal first quarter and provided weaker-than-expected revenue and earnings guidance for the second quarter34.
What specific factors led to the decline in Salesforce's stock price following their quarterly earnings report?
Salesforce's stock price decline was primarily due to a miss in quarterly revenue and weak guidance for the second quarter. Despite earnings per share beating analyst estimates, the company's first-quarter revenue fell short of expectations. This is the first time Salesforce has missed revenue expectations since February 2006. Additionally, the company's guidance for second-quarter revenue and earnings also fell below analyst estimates. These factors led to a significant drop in Salesforce's stock price, with shares plunging by 17%.