Salesforce crushes earnings estimates
August 31, 2023 | Read Online | Dawn Report August 31, 2023 |
| | | I keep waiting for the recession that so many "experts" were predicting… but company after company keep crushing it when it comes to earnings. | The latest is Salesforce Inc. | CRM was up over 5.5% in after-hours trading and we will see how the stock reacts first thing this AM. | Earnings were $2.12 per share compared to just $1.90 per share expected. Revenue was better than what the experts thought as well. The company brought in $8.6 billion as opposed to just $8.53 billion. | Revenue in this quarter was also up 11% compared to last year at this time. | According to finance chief Amy Weaver, the company is still facing big problems. | "We are still seeing elongated sales cycles, additional deal approval layers, and deal compression in our subscription and support and professional-services businesses," she said. | But the question is whether this is just managing the expectations game. | One of the major factors you can't afford to overlook is the focus on AI. | "We're leading our customers into the new AI era," said CEO Marc Benioff. | The company evidently sees this as a key to future growth. | The revenue is coming in… but the open question is whether AI is just hype. | The expectations game works two ways. | You can downplay what you expect in the short-term and then exceed the estimates… | Or you play up what you expect in the long-term and win investment now. | Perhaps Salesforce is doing both. | Get What's Yours, | Jeff Bishop | | WORD ON THE STREET | HHS Boosts Weed Stocks - The Department of Health and Human Services has officially recommended classifying marijuana as a "lower-risk" drug, giving a boost to cannabis stocks like Tilray Brands and Canopy Growth. If the recommendation is followed, marijuana will be a Schedule III drug.
| | Bad News Is Good News - American economic growth in the second quarter has been revised downward - but that's a good thing because of the insane way our economy is governed. The Bureau of Economic Analysis revised growth down to 2.1% instead of 2.4%. However, that eases concerns about Federal Reserve Chair Jerome Powell's warning about "above-trend growth" which could lead to another interest rate hike.
Burgers May Be Smaller Than They Appear - Americans will put up with a lot - but don't mess with our fast food. Burger King failed in an attempt to have a lawsuit against the company dismissed. A class action lawsuit claims that the burgers which are actually served are significantly smaller than what the menus suggest. Wait until the shrinkflation lawsuits hit.
| | HOT SPOTS: What's Going on in Geopolitics | North Korea And Russia Moves Towards Arms Deal - The State Department warned North Korea not to approve a new arms deal with Russia, saying it would "directly violate a number of U.N. Security Council resolutions." However, North Korea and Russia have been increasing diplomatic cooperation in recent months. Besides, aren't we already sanctioning North Korea? Is there some North Korean export market I don't know about?
| India, Malaysia Protest Chinese Land Grab - China recently published a map that seemingly claims Indian territory as well as Malaysian maritime territories near Borneo. "We reject these claims as they have no basis," said the Indian External Affairs Ministry. "Such steps by the Chinese side only complicate the resolution of the boundary question." This is why I don't take BRICS all that seriously - India and China are hardly united.
France Condemns Coup In Gabon - France has officially "condemned the military coup that is under way in Gabon," as another African ally has seemingly fallen. Along with Mali, Burkina Faso, and most recently Niger, French-speaking Africa has seen a spate of military coups - all to impose regimes that are notably hostile towards Paris.
| | CUTTING EDGE: What's Happening In Tech | XBox To Incorporate OneDrive Uploads - XBox is now testing a new feature that allows users to automatically upload screenshots and clips to OneDrive. Given MSFT's testing schedule, while just a few users are seeing the feature now, we can expect it to be expanded in just a few months.
Feds Going After Musk Again - The DOJ and SEC have begun an investigation into Tesla's use of company funds for "Project 42." What was Project 42? Supposedly, it was a glass house intended for the personal use of Elon Musk. Insert your own joke about not throwing rocks.
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