Earnings Watch: Cloud software is suffering a cold November rain. Can Snowflake and Salesforce turn things around?

by | Nov 28, 2022 | Stock Market

The week after Thanksgiving could determine if cloud software is still too fat or if there are some tasty leftovers for Wall Street. It has been a rough month for cloud-software stocks, which experienced their worst week on record to kick off November and have seen cold rain continue to fall amid a perceived slowdown in business spending after a wave of cloud adoption in the first two years of the pandemic. Early results from Atlassian Inc.
and Twilio Inc.
started the downturn, and recent earnings have not revived the sector.

Autodesk Inc.
signaled a slowdown in business spending on Tuesday as executives trimmed their billings outlook for the year, leading Mizuho desk analyst Jordan Klein to conclude that the week after Thanksgiving could be the tipping point for software earnings. “I do not want to be overly dramatic here,” Klein wrote in a Wednesday note, “but after a very rough year” — along with software lagging tech and the S&P 500 — “the software sector feels poised to potentially roll over hard if a slew of key results next week are disappointing.” The slate of cloud-software companies reporting next week is long, and two of the biggest names in the sector, cloud pioneer Salesforce.com Inc.
and hot young name Snowflake Inc.
both report on Wednesday. They will be preceded by Intuit Inc.
Workday Inc.
and CrowdStrike Holdings Inc.
on Tuesday, and will be joined on Wednesday by Okta Inc.
Splunk Inc.
Nutanix Inc.
Box Inc.
and Yext Inc.
Cloud-security name Zsca …

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