CRM Takes a Dive
Cloud Software Giant's Disappointing Results Send Stock Tumbling
Analysts Slash Price Targets as Salesforce Faces Headwinds
Salesforce Inc. (CRM) shares are taking a hit today after the cloud software giant posted disappointing results in its first quarter. The company's revenue and earnings per share both fell short of analysts' expectations, sending shares down more than 7% in pre-market trading.
Salesforce's revenue rose by only 8.1% to $7.41 billion, missing analyst estimates of $7.5 billion. Earnings per share also fell short of expectations, coming in at $0.98 per share compared to analysts' forecasts of $1.01 per share.
The disappointing results have prompted several analysts to slash their price targets on Salesforce's stock. JMP Securities lowered its target from $250 to $220, while Deutsche Bank cut its target from $230 to $200. Wedbush Securities also lowered its target from $240 to $210.
Analysts cited concerns about Salesforce's growth prospects and the impact of the economic slowdown on the company's business. Salesforce's growth has been slowing in recent quarters, and the company has been facing increased competition from rivals such as Microsoft and Oracle.
The economic slowdown is also a concern for Salesforce, as companies may be less likely to invest in new software during a downturn. Salesforce has a large number of customers in the technology sector, which has been hit hard by the economic slowdown.
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