5 Things to Know Before the Stock Market Opens

5 Things to Know Before the Stock Market Opens

Salesforce (CRM) shares are plunging in premarket trading after the cloud-based software company issued a weak outlook and missed quarterly revenue forecasts for the first time in 18 years; Costco Wholesale (COST), Dell Technologies (DELL), and Marvell Technology (MRVL) are reporting quarterly earnings after the bell today; and UiPath (PATH) shares are tumbling after the artificial intelligence (AI) software provider announced an unexpected CEO shakeup and provided current-quarter sales guidance that came in significantly below Wall Street estimates. U.S. stock futures are extending declines as Treasury yields stay elevated amid concerns that the Federal Reserve will keep interest rates higher for longer as inflation persists. One data point that may calm fears that the economy is too hot is today’s first revision of first-quarter GDP, which is expected to show a slowdown from the initial figure. Here’s what investors need to know today.

1. Salesforce Slumps as Software Giant Posts Biggest Quarterly Miss in 18 Years

Salesforce (CRM) shares are plunging more than 15% in premarket trading after the cloud-based software company reported its first quarterly revenue miss in 18 years and issued a soft annual sales outlook amid enterprise customers reining in their IT budgets and longer-than-average deal cycles. Salesforce provided weaker-than-expected guidance for the second quarter, but maintained its outlook for the full 2025 fiscal year. Salesforce Chief Executive Officer (CEO) Marc Benioff added that the company could be poised to gain from the “AI transformation” as its enterprise customers build AI-powered tools.

2. Costco Expected to Report Q3 Results Gains Under New CFO

Costco Wholesale (COST) is expected to report strong fiscal third-quarter earnings after the closing bell in the warehouse retailer’s first report in decades with a new finance chief. Longtime CFO Richard Galanti stepped down from the position in March and was replaced by former Kroger (KR) CFO Gary Millerchip. The results are expected to show that the company continues to win consumers over at a time when retailers like Target (TGT) struggle from a pullback in discretionary spending. Analysts expect Costco to report growing revenue and net income from the year-ago period, along with an uptick in memberships. Uber recently announced that Uber Eats users can order Costco products through the app, whether they are Costco members or not. Shares are little changed in premarket trading. 

3. Dell Gains Ahead of Q1 Results, With PC Maker’s AI Business in Focus

Dell Technologies (DELL) shares are rising about 2% in premarket trading ahead of earnings for the first quarter of fiscal 2025, with investors likely to be watching for updates on how artificial intelligence (AI) is benefiting its server business. Analysts expect the storied PC maker to post higher on-year revenue but a decline in net income. The company has been building AI partnerships, however, and it recently announced that it would be expanding its AI factory through its partnership with Nvidia (NVDA), giving its shares a boost. Dell also unveiled new AI PCs as part of Microsoft’s (MSFT) new category of Windows PCs designed for AI.

4. UiPath Tumbles After CEO Resigns, Outlook Lags Estimates

UiPath (PATH) shares are falling by almost a third in premarket trading after the AI software provider announced an unexpected CEO shakeup and provided current-quarter sales guidance that came in significantly below Wall Street estimates. The company, which develops software that automates repetitive tasks and processes, said CEO Rob Enslin is stepping down on June 1 and will be replaced by co-founder Daniel Dines, who had resigned as co-CEO on Jan. 31. Shares of the company, a partner of Alphabet’s (GOOGL) Google, have fallen around 20% since Enslin assumed sole leadership. For the full year, UiPath downwardly revised its guidance, saying that it now expects net sales in the period of $1.405 billion to $1.410 billion, below its earlier forecast of between $1.555 billion and $1.560 billion.

5. Marvell Technology Dips Ahead of Q1 Results After the Bell 

Marvell Technology (MRVL) shares are edging lower ahead of first-quarter results after bell, with analysts expecting lower revenue and a wider loss from a year ago. In investors’ sights will be any signs of growth in the chipmaker’s data center segment and any updates related to AI. Analysts project Marvell’s revenue to be $1.15 billion and its net loss to hit $196.6 million, wider than the $168.9 million loss recorded in the year-ago period.

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