Salesforce Shares on Road to Recovery with Upbeat Q4 Results! GameStop's Cost-cutting Measures Pay Off

GameStop Q1 24 – 01/06

GameStop shares surged out of the blocks to a 3-month high when they reported a surprise Q4 profit of $0.16c a share, the first quarterly profit in 2 years. Q4 revenues came in at $2.23bn, only slightly below the levels they were a year ago, helped by a strong performance from collectibles and hardware sales.

 

Annual revenues were only modestly lower than the previous year, coming in at $5.93bn. It is important to note that the profit numbers were boosted by a $4.5m boost from the sale of some digital assets. The company offered no guidance as management look to turn around a business that has been ailing for several years.

 

Management have been successful in cutting costs as well as withdrawing from non-core markets, however they have been hampered by some poor decisions, the partnership with failed crypto exchange FTX, as well as experimenting with NFT at around the same time the bottom fell out of that market. For Q1 revenues are forecast to fall to $1.34bn, with losses of $0.17c a share.

Salesforce Q1 24 – 31/05

Salesforce shares have been on a slow road to recovery after hitting their lowest levels since March 2020, back in December last year. In March their Q4 numbers helped to give the Dow a boost after the company reported better than expected Q4 results and an upbeat outlook for the upcoming year. Q4 revenues rose 14% to $8.38bn, while profits doubled to $1.68c a share.

 

The Q1 outlook saw revenues estimated at $8.16bn to $8.18bn, and profits of $1.60c a share, while annual 2024 revenues are expected to rise to a minimum of $34.5bn, a decent increase from 2023's $31.35bn.

 

The outperformance has come from a number of factors, the continued growth of the cloud computing market. Salesforce is a leading provider of cloud-based CRM software, as well investing heavily in AI powered tools, recently launching its Einstein platform, which is a suite of artificial intelligence-powered tools that help businesses make better decisions.