Salesforce's Growth Ambitions Are Stymied By Unpredictable AI Headwinds
Salesforce's (NYSE: CRM) uninspiring first-quarter earnings, reported on May 30, startled investors, who expressed their displeasure by driving the stock down 20% -- the worst single-day price decline in the company's 20-year history.
The company's revenue miss and weak guidance were cause for concern. But the more significant story is the onset of forces impacting the company that are as unpredictable as they are profound, such forces could have adverse consequences for Salesforce's short to intermediate-term prospects.
Salesforce's pedestrian first-quarter fiscal 2025 results were worrisome in several areas. Revenue grew 11% year-over-year in nominal and constant currency terms to $9.1 billion -- the first time this measure struggled to break single digits. Second-quarter revenue guidance was $9.2 billion -- which would be a tepid 7.2% increase.
Source Fool.com
