Diamonds and Dogs
Salesforce (CRM) remains in the clouds. The cloud computing pioneer is up 3% to new highs thanks to better than expected earnings. The company beat earnings by a penny as revenues rose 24.3% year over year to $2.85 billion ahead of estimates. Salesforce also raised quarterly and full year earnings due in part to a tax rate drop to 21.5% from last year's 34.5%. Salesforce is expected to grow sales by 20%, but the stock trades for 60 revised upward earnings. Not the cheapest stock in the world.
Box (BOX) caught in a box. The cloud storage company is down 18% to a five month low after missing Wall Street estimates. Box competes with Dropbox, Microsoft's OneDrive and Google's Drive. The rate of growth in paid customers slowed to 2,000 in the quarter, compared with 4,000 additions in the third quarter.