Good Evening! Crucial manufacturing statistics showed mixed results and two Federal Reserve officials hinted at a more aggressive rate-hiking campaign in the coming months, resulting in U.S. markets closing mostly down.
The S&P 500 fell 0.47%, and the Dow Jones remained unchanged at 0.02%. The Nasdaq Composite decreased the most by 0.66%.
A LOT OF PRESSURE
Salesforce (CRM) published its Q4 results after the market’s closing, exceeding sales projections and forecasting profit growth. Thus the company’s stock rose almost 13% in after-hours trade.
- Revenue: $8.38 Billion vs. $8.00 Billion Expected
- Earnings Per Share: $1.68 vs. $1.37 Expected
Salesforce has made initiatives to reduce expenses, kinda… This includes a 10% workforce reduction in January. However, The Wall Street Journal reports that the corporation continues to pay actor Matthew McConaughey around $10 million each year for creative consultancy services.
Looking ahead, there is a lot of pressure! Salesforce has more than five activists surrounding it. What does this mean? It is increasing the pressure on the software company’s founder and CEO Marc Benioff to reduce spending, increase revenues, and even execute a more effective succession plan.
EVERYTHING COMES TO AN END
Novavax Inc. (NVAX) said that there is serious concern about its capacity to remain in business into next year. This is the company’s latest warning after its struggles to develop and commercialize a Covid-19 vaccine. In prolonged trading, the stock price plummeted (down 25.92%).
The Maryland-based drug manufacturer said in a statement that revenue projections for 2023 are surrounded by “significant uncertainty” despite the fact that there should be enough money to finance operations. However, the warning accompanied the company’s announcement of a fourth-quarter loss that was almost double what analysts had predicted.
Don’t feel terrible if you’re unfamiliar with them. According to statistics from the Centers for Disease Control and Prevention, Novavax has supplied 1.1 million doses of their Covid vaccine in the United States. Now compare that tiny fraction to the nearly 650 million from Pfizer and 400 million from Moderna.