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Salesforce forecasts Q1 revenue above estimates

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Last Week’s Highlights

Salesforce keeps optimistic forecasts

During the week, Salesforce forecast that its revenue for the first quarter of the year will beat analysts’ expectations. This caused its share buyback to double to $20 billion, bringing quite positive numbers for the company that has had to deal with pressure from activist investors. The optimism around the cloud-based software company boosted its shares by 14%. As if that wasn’t enough, Marc Benioff, CEO of Salesforce, stated that the company will be integrating and using artificial intelligence much more throughout its cloud. After adjusting to the inconvenience of office closures and staff cuts due to the pandemic, Salesforce forecasts quarterly revenue between $8.16 billion and $8.18 billion, higher than the average analyst estimate of $8.06 billion.

Tesla fails to impress

Tesla shares fell 7% last Thursday after Elon Musk and his team gave a presentation that failed to motivate investors. They presented new plans to cut assembly costs in half, talked about investing in a new plant in Mexico, and discussed the company’s innovation in managing its operations at Tesla’s investor day on Wednesday. However, shareholders were expecting some announcements about an affordable electric vehicle. It is charged that Tesla’s meeting didn’t detail much regarding the company’s plans, or the timing of the concepts presented. Melin Investor founder Guido Petrelli was blunt with Elon Musk’s company. “The biggest surprise of Tesla’s investor day is that there were no surprises,” he stated.

Coming Up This Week

AI lifts Broadcom’s hopes up

Broadcom raised its forecasts and predicted that its revenues for the second quarter of the year will exceed estimates. This is due to the increase in the use of Artificial Intelligence by several companies, which boosts demand for Broadcom chips for data centers. The technology market was not going through its best moment, but AI emerged to revive companies such as Broadcom itself or Nvidia Group. According to Broadcom CEO Hock Tan, his company is very optimistic and confident that demand for its products will increase “exponentially.” “We are seeing some of these hyper scale customers putting a sense of urgency and focus and, of course, spending to keep up, if not to fall behind, as we see the enthusiasm, the hype perhaps, in driving applications and workloads in generative AI,” he told analysts at a conference.

Macy’s wants to beat expectations once again

Macy’s beat estimates during the holiday season. Similar to many retailers, the US chain enticed inflation-conscious consumers with deep discounts during the holiday season to get rid of excess inventory. “We did strategic markdowns and intentionally did not pursue unprofitable sales,” stated CEO Jeff Gennette. On the heels of this strong performance, Macy’s forecast an annual profit well above expectations. The company is looking to curb promotions to bolster its margins, which sent its shares up 10% last Thursday. Macy’s forecasts full-year adjusted earnings per share of $3.67 to $4.11, versus analysts’ average estimates of $3.84.

MARKET NEWS

After a volatile week, Wall Street’s main indexes closed Friday’s session higher. This came as US Treasury bonds declined and economic data helped investors partly forget the increasing likelihood that the Federal Reserve will maintain its tightening policy until the end of the year.

The Dow Jones index returned to positive numbers, rising 387.4 points, or 1.17%, to 33,390.97. The S&P 500 ended a three-week losing streak and rose 64.29 points, or 1.61%, to 4,045.64. Similarly, the Nasdaq Composite increased 226.02 points, or 1.97%, to 11,689.01.
Billionaire David Einhorn warns interest rates will peak at a higher level than expected.

More Things to Sip On…

Amazon pulls back on Virginia HQ.
Disney may sell Hulu stake.
Analyst reconsideration gives Asana stock a boost.

FlexACADEMY

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– Benjamin Franklin –

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