Why Salesforce Stock Slumped on Tuesday
Yahoo Finance ·
Stock market players were clearly uninterested in pursuing a relationship with customer relationship management (CRM) software king Salesforce ( CRM 2.13% ) on Tuesday. The veteran company's shares slid by more than 2% that trading session, as they were swept up in a broader rout of long-standing software companies. This general bearishness can't be blamed directly on Salesforce. Rather, it can be tracked to the latest news from software titan International Business Machines . That company issued a preliminary quarterly earnings report Tuesday morning; both it and its shareholders probably now wish it hadn't. That's because IBM's projections for revenue and profitability indicate both relatively weak growth and a pair of misses of analyst estimates. For the record, it's expecting only a 1% year-over-year bump in revenue to slightly over $17 billion, and a 5% rise in net income not under generally accepted accounting principles (GAAP) to $2.27 per share. What made this really sting and helped ignite that software segment rout was IBM CEO Arvind Krishna's reasoning for the weaker-than-expected figures. Krishna spoke of notable shifts among clients in their technology spending, from software to hardware items such as servers and storage.
DYAX Investor Sentiment
Bullish (Long) 62% · Bearish (Short) 38%
269 participants
Related News
- Aehr projects $130M-$150M fiscal 2027 revenue as AI and silicon photonics demand drives record ~$100.6M effective backlog
- How Cheap Is ExxonMobil Stock Once You Look Two Years Out?
- Why IBM Stock Crashed Today
- LNG Canada offers First Nations option to invest up to C$1B in phase 2 project
- Why Palo Alto Networks Stock Zoomed Almost 7% Higher Today
- Oil eases off day's highs after Trump nixes proposed 20% Strait of Hormuz transit fee