Tech Stocks Fall Despite Optimism from Salesforce, Okta

Salesforce predicted record adjusted earnings in the second quarter after beating expectations in the first quarter, and increased its guidance for record profit for the full year. But the stock slid more than 4% in after-hours trading.

Salesforce received a boost from activist-investor activity and CEO Marc Benioff’s pivot from focusing on revenue growth to expanding profit margins with layoffs and other cost cuts. Benioff’s promise of record profit comes amid a weaker outlook for corporate spending.
Online security firm Okta is forecasting better-than-expected results for the second quarter and raised its full-year guidance, but the CEO Todd McKinnon told MarketWatch macro conditions could worsen. Shares fell 16% after hours.
Despite artificial intelligence being the hottest topic in tech these days, shares of C3.ai fell nearly 22% in after-hours trading on soft annual revenue guidance. The AI firm reported a narrower-than-expected adjusted fourth-quarter loss on better-than-expected revenue.
C3.ai’s CEO Tom Siebel said there is broad consensus that the addressable market for enterprise AI is large and rapidly growing. He told analysts about a few contracts the firm has landed with the Defense Department.

What’s Next: C3.ai’s fiscal 2024 revenue guidance of $295 million to $320 million was on the light side of analysts’ estimates of $317 million. The company also said it is on track for its previously stated goal to be profitable on an adjusted basis by the end of fiscal year 2024.

—Liz Moyer and MarketWatch

As of June 1, Salesforce is up over 50% YTD in 2023, still near 30% down around its all time highs of $300. Okta remains flat on YTD and still down 70% off its all time highs.