The software sector has been causing concern among investors this year, and the latest earnings report from Salesforce Inc. has only intensified these worries.
Regarded as a powerhouse in the software industry, Salesforce fell short of its quarterly revenue guidance, leading to a 16% drop in its shares during after-hours trading on Wednesday.
If this decline continues through Thursday’s closing, it would be the biggest drop in Salesforce shares since they fell 18% on August 21, 2008.
For the current quarter, Salesforce expects to generate $9.20 billion to $9.25 billion in revenue, with adjusted earnings per share ranging from $2.34 to $2.36. This falls short of the consensus view of $9.35 billion in revenue and $2.40 in adjusted earnings per share.