Salesforce is a big technology company. They sell things online and make cloud services. Recently, they decided to buy back more of their own shares. They will spend $10 billion on this. This is good news for people who own Salesforce shares. But, they also shared some less good news. Their money forecasts for the year were lower than people expected. This caused their share price to drop by about 2%.
Many believe this is a sign that companies might start to spend less on technology. This is because costs are going up and interest rates are high. Salesforce thinks they will earn between $37.7 and $38 billion this year. But, other people thought they would make more, around $38.62 billion.
In response to worries of a slowing economy, Salesforce cut 700 jobs last month. This is about 1% of all the people who work for them. This is happening a lot in the technology and media industries at the moment.
Despite these challenges, Salesforce had some good news. Last quarter they made more money than people thought they would. They made $9.29 billion. People had only expected them to make $9.22 billion. They also made more profit per share than expected.
In early 2023, some investors wanted Salesforce to make big changes. They wanted the company to cut costs and buy back more shares. They also dismantled their mergers and acquisitions committee. For the full year, they expect to make between $9.68 and $9.76 of profit per share. This is a bit more than the predicted $9.57 per share.
(Zaheer Kachwala wrote this report. Maju Samuel and Shailesh Kuber edited it.)
Vocabulary List:
- Technology (noun): The application of scientific knowledge for practical purposes.
- Cloud services (noun): Services delivered over the internet through cloud computing.
- Forecast (noun): A prediction or estimate of future eventsespecially the weather.
- Share price (noun): The current price of a single share of a company stock.
- Economy (noun): The wealth and resources of a country or regionespecially in terms of production and consumption of goods and services.
- Profit (noun): A financial gainespecially the difference between the amount earned and the amount spent in buyingoperatingor producing something.
