SaaSpocalypse, or the apocalypse for software stocks, continues this morning. Salesforce (CRM) may trade down by around 4-5% today despite touting its growth in AI.
Salesforce reported a 12.1% year-over-year increase in revenue, to $11.2 billion. RPO, or remaining performance obligations, increased by 14% Y/Y to $72.4 billion. CEO Marc Benioff said that it rebuilt the firm to become the operating system for the Agentic Enterprise.
In an introduced metric, agentic work units (“AWU”), Salesforce achieved 2.4 billion AWUs to-date. Still, markets might not want to adopt another measure that does not have a financial value to it.
Zoom (ZM) might trade down by around 5%. In Q4, revenue of $1.25 billion is up by 5.9% Y/Y. In Q1, non-GAAP EPS of $1.40 to $1.42 is below expectations of $1.45. Zoom will likely continue to face competition from Microsoft’s (MSFT) Teams video chat app.
Trade Desk (TTD) lost 15% in after-hours trading. In Q1, the ad platform posted revenue of $847 million (+14.3% Y/Y). Unfortunately, the stock-based compensation of around $500 million last year is too punitive for shareholders to accept.
Beware of the S&P 500 (IVV) removing TTD stock from the index in its next revaluation.
Before TTD’s results, the Chief Financial Officer left his position. Shares have a good chance of trading below $20 in the coming weeks. If it trades in the teens, it might attract a buyout offer.
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