Weekly Roundup: Key Updates from Microsoft, Salesforce, Chewy, Okta, and Crowdstrike (May 30 - June 3)

This week, quarterly reports have been issued by Salesforce, Chewy, Okta, and Crowdstrike Holdings, while Microsoft has revised its quarterly forecast. More details of the events are below.

Salesforce report: profit falls – shares grow

On Tuesday 31 May, a report for Q1, financial 2023 was published by the developer of cloud software, Salesforce.com Inc. The company is increasing production, optimising employment, and is not planning any major acquisitions soon.

Salesforce earnings in February–April, compared to the results of the same part of the past calendar year, recorded a 24.3% increase to $7.41 billion. Net profit dropped 94% to $28 million or $0.03 per share.

Salesforce forecasts that in Q2 this financial year, earnings will reach $7.7 billion, and loss per share will be $0.02-0.03. As for the results of the year, the company expects earnings of $31.7-31.8 billion and EPS of $0.38-0.4.

On 1 June, the share price of Salesforce.com Inc. (NYSE: CRM) rose 9.9% to $176.07. On the next day, the shares jumped 7% more, reaching $188.4.

Chewy report provoked stock price growth by 24%

On Wednesday 1 June, a quarterly report for Q1, 2022 was issued by Chewy Inc., the online retailer of pet food and pet-related supplies. Earnings increased 13.7% to $2.34 billion, while analysts polled by Zacks Investment Research had forecast $2.47 billion.

The net profit of the corporation lost 52.3% to $18.5 million. EPS reached $0.04, and according to Refinitiv, Wall Street experts had expected a loss per share of $0.14. Chewy forecasts that this quarter's earnings will reach $2.43.-2.46 billion, and $10.2-10.4 billion by the end of the year.

After the report and forecasts were published, the quotes of Chewy Inc. (NYSE: CHWY) leaped 24.22%, reaching $29.18. This was the largest intraday growth to be recorded this year.

Okta report: earnings grew by 65%

On Thursday 2 June, a report for Q1, financial 2023 was published by software developer Okta Inc. Earnings in February–April recorded a 65.3% increase to $414.9 million, the net loss went up 122.2% to $242.7 million, and the loss per share rose 87.9% to $1.56.

Okta changed its forecast for Q2 this financial year. The company had expected the loss per share to reach $1.24-1.27 while earnings would be $1.78-1.79 billion. The loss per share is now forecast to reach $1.11-1.14 and earnings $1.81-1.82 billion.

While waiting for the quarterly report, the shares of Okta Inc. (NASDAQ: OKTA) jumped 1.66% to $84.43. After the publication, the quotes rose 10.96% more, reaching $93.68.

Microsoft decreased forecast for current quarter

On 2 June, it was heard that tech giant Microsoft had revised its forecast of earnings and profit for this quarter, which will end on 30 June. The corporation explained this to losses incurred in the process of converting foreign currencies to the USD, which is now growing strong.

Earnings are expected to reach $51.94-52.74 billion instead of $52.4-53.2 billion, as per the previous forecast. EPS was revised from $2.28-2.35 to $2.24-2.32. Analysts polled by Refinitiv, think that this quarter's EPS will reach $2.33 and earnings will increase to $52.87 billion.

On the same day, after the quarterly forecast was revised, the stock quotes of Microsoft Corporation (NASDAQ: MSFT) lost 3.97% over the trading session, reaching $261.6. However, at the closing of the session the shares changed direction, surging 0.79% to $274.58.

Crowdstrike Holdings report: loss dropped by 63%

On Thursday, CrowdStrike Holdings Inc. which works with info safety, presented its report for Q1, financial 2023. Earnings recorded a 61.1% growth to $487.8 million.

Simultaneously, the net loss of CrowdStrike narrowed by 63.3% to $30.4 million and the loss per share by 63.2% to $0.14. The management forecasts that in Q2, earnings will reach $512.7-516.8 million and $2.19-2.2 billion by the end of the year.

The decline in the net loss and the optimistic forecast sent the shares of Crowdstrike Holdings Inc. (NASDAQ: CRWD) up 7.79% to $174.02 on 2 June.

Summing up

Salesforce reported a 94% decline in the quarterly profit, but this did not prevent the stock quotes from jumping 10%. After the report and forecast were issued, the shares of Chewy also rallied 24%.

Okta announced an increase in the quarterly earnings and revised the forecast upwards for Q2 this year, making its shares leap 11%. Microsoft decreased the forecast for this quarter due to the growing strength of the US dollar.

The shares of Crowdstrike rose 8% on declining net loss and an optimistic forecast.