Salesforce Delivers Stellar Performance
Salesforce hit the ball out of the park this week, witnessing a 3% surge in its stock price as it unveiled a fourth-quarter performance that blew past expectations. With an EPS of $2.29, a substantial jump from the previous year, and revenue hitting $9.29 billion compared to $8.38 billion, Salesforce put on a show that left analysts impressed.
Despite its impressive fourth-quarter results, Salesforce did caution about a potential slowdown in cloud and tech spending in the coming year, reflecting concerns over high-interest rates and inflation. However, that did not stop the company from declaring its first quarterly dividend of $0.40 per share and boosting its share buyback program by a whopping $10 billion.
Zoom Ascends on Hybrid Work Demand
Zoom Video Communications soared to new heights this week, with its stock rocketing nearly 8% following a stellar fourth-quarter performance. Bolstered by a surge in demand for its products in the hybrid work environment era, Zoom announced a share repurchase program of up to $1.5 billion.
With a Q4 EPS of $1.42 exceeding expectations and revenue climbing 2.6% year-over-year to $1.15 billion, Zoom proved it was here to stay. Looking ahead, the company forecasted an EPS of $1.18 to $1.20 for Q1/25, projecting revenue around $1.126 billion, slightly below the consensus estimate.
eBay Rides High on Q4 Success
eBay enjoyed a fruitful week, with its shares surging over 7% after exceeding expectations with its fourth-quarter results. Posting an adjusted EPS of $1.07 and revenue of $2.56 billion, eBay outperformed analyst predictions, even amidst a challenging economic landscape.
The company’s strategic focus on categories like refurbished items and automotive parts paid off, with holiday spending helping drive gross merchandise volume to $18.6 billion. Looking forward to Q1, eBay aims to maintain its momentum with an adjusted EPS projection between $1.19 and $1.23 and revenue expected to range from $2.50 billion to $2.54 billion.
Snowflake Faces Chill After Revenue Forecast
Snowflake faced a frosty reception this week, with its shares plummeting 18% as it provided a weak revenue guidance that failed to meet Wall Street’s expectations. Despite outperforming with an adjusted EPS of $0.35 and revenue of $774.7 million in Q4, the company’s outlook for future revenue fell short, sparking concerns about reduced customer spending.
The unexpected departure of CEO Frank Slootman further added to the gloomy atmosphere surrounding Snowflake’s stock performance. ProTips analysis highlighted downward earnings revisions by 21 analysts and the company’s lack of profitability over the past year, painting a challenging picture for Snowflake’s future prospects.
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