Tesla shares are down about 3% as of 5:30 p.m. ET as the EV giant’s Investor Day is underway at its Gigafactory in Austin.
CEO Elon Musk, dressed in his customary black t-shirt and black pants, told the audience there is a clear path towards sustainable energy.
“Most of the smart people I know don’t see this clear path,” said Musk during the live-streamed event.
Franz Von Holzhausen, chief designer at Tesla, said the company will show its next-gen vehicle at a “later date.”
Investors have been anticipating this event, watching for details on the company’s long-term expansion strategy and Musk’s Master Plan 3.
Tesla shares rallied from a two-year low in early January. Year to date, the stock is up more than 68%.
Salesforce (CRM)
Salesforce shares rose 12% after reporting fourth quarter earnings, during a defining time for the cloud giant. The company sees 2024 revenue between $34.5 billion and $34.7 billion versus estimates of $34.05 billion.
Salesforce’s posted quarterly revenue of $8.38 billion, beating expectations of $8 billion. Its adjusted earnings per share came in at $1.68 versus $1.37 expected by Wall Street analysts.
The company faces pressure from a number of activists calling for higher profit margins and a succession plan from co-founder and CEO Marc Benioff now that Bret Taylor is no longer co-CEO.
“They have an outside force watching them so I think it stops them from making dilutive acquisitions which has been a major pushback from investors to Salesforce,” Rishi Jaluria, software analyst at RBC Capital told Yahoo Finance Live on Wednesday.
“It does bring about additional scrutiny around their cost and discipline around spending,” he added.
The software company acquired office messaging app Slack for $27.7 billion in 2021. Salesforce, like other tech giants which grew quickly during the pandemic, has been slashing jobs as it aims to cut costs amid a slowing economy and tighter monetary policy environment.
Snowflake shares fell after the data software company beat on the top and bottom line for its latest quarter. However its full-year earnings guidance disappointed Wall Street analysts.
The company forecasts 2024 product revenue growth of 40% to $2.71 billion, below the $2.83 billion predicted by Wall Street. Snowflake had previously forecast a rise of 47% for the same metric.
Analysts had been watching the product revenue growth given the company’s pricing model. Snowflake charges customers based on how much they use their software. In a decelerating economy, enterprise clients are inclined to pull back on cloud spending.
Snowflake authorized a $2 billion share buyback plan.
Silvergate Capital (SI)
Silvergate shares tanked 26% after the crypto-friendly lender said it will delay its annual report release in order to review financial controls.
“The company is currently analyzing certain regulatory and other inquiries and investigations that are pending with respect to the company,” Silvergate said in an SEC filing on Wednesday. “The company’s independent registered public accounting firm is also requesting detailed information relating to such matters and the company is responding to such requests.”
The California-based bank is under investigation by the Justice Department in relation to its dealings with the now bankrupt FTX platform, according to a Bloomberg report.
Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
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Source: finance.yahoo.com