Group 1: United Health - United Health is the worst performing stock in the Dow, down over 34% in 2025 due to rising medical costs and regulatory scrutiny over its Medicare Advantage business [56][57]. - The company faced challenges with medical cost management and leadership changes, which negatively impacted investor sentiment [60][61]. - Despite the difficulties, there are signs of a potential turnaround, with management guiding for EPS growth in 2026 [66][68]. Group 2: Salesforce - Salesforce shares are down more than 22% in 2025, facing concerns about AI's impact on its software and pressure from activist investors [81]. - The company has struggled to monetize AI effectively, leading to skepticism about its future growth prospects [82][84]. - Analysts suggest that Salesforce needs to improve its enterprise sales and product offerings to regain investor confidence [82][90]. Group 3: Proctor and Gamble - Proctor and Gamble is down about 14% this year, attributed to a deceleration in organic sales growth and cautious consumer spending [41][42]. - The company has seen a shift in consumer behavior, with a decline in premium product sales impacting overall performance [43][44]. - There is optimism for 2026, as the company may benefit from a normalization of sales growth trends and improved consumer sentiment [45][50]. Group 4: Nike - Nike is down about 11% this year, struggling with inventory issues and a prolonged turnaround process [8][9]. - The company has faced challenges in its lifestyle segment, losing market share due to changing consumer preferences [22][24]. - Analysts believe that Nike needs to demonstrate topline growth and regain consumer interest to improve its stock performance [21][23]. Group 5: Honeywell - Honeywell shares are down more than 6% in 2025, impacted by structural changes and a lack of exposure to high-growth sectors like AI [100][103]. - The company is undergoing a transformation to unlock value through spin-offs, but execution will be key to realizing this potential [101][104]. - Analysts expect Honeywell's aerospace business to show improvement in margins and growth in 2026 as contracts are reset [110][113].

Hello and welcome to Asking for a Trend. I'm Josh Lipton. In the next half hour, we are breaking down the trends of today that'll move stocks tomorrow.There's a lot to keep track of, so we're focusing on what you need to know to get ahead of the curve. Here are some of the trends we're going to be diving right into. The S&P 500 snapping a 4-day losing streak thanks to the CPI reading.Got a check on the market action, including moves in the AI trade and gold. Plus, a look at the future of Berkshire Hathaway ...

Core Insights - Salesforce's recent earnings report was largely in line with expectations, both in actual performance and forward-looking guidance, with key debates focusing on AI's impact on software and Salesforce's monetization of its AI capabilities [2][3][10] Revenue and Growth - Agent Force, Salesforce's AI product, is experiencing significant growth, with an annual recurring revenue (ARR) exceeding $500 million, representing a 330% year-over-year increase [3][5] - Despite the growth of Agent Force, its contribution to Salesforce's total revenue remains small, leading to cautious sentiment among investors regarding its overall impact on growth [5][7] Client Engagement and Pricing - Salesforce reported 362 clients engaging in AI usage on a prepaid credit basis, indicating momentum in AI adoption, although the deals are generally small, averaging around $50,000 to $60,000 [6][7] - There is a noted lack of willingness among large organizations to fully commit to AI programs, as they are still exploring appropriate use cases [8][9] Future Outlook - Management has indicated an expected acceleration in revenue growth over the next 12 to 18 months, with underlying metrics such as remaining performance obligations (RPO) and billings growth outpacing revenue growth [10] - The transparency provided by Salesforce regarding its AI initiatives is seen as a positive step, especially in a market filled with AI hype [8][9]

[music] Good Thursday morning at Wall Street. I'm Yahoo Finance executive editor Brian [music] Sazi. This is opening bid. I'm feeling it today, friends. So much to get to and so little time. Salesforce CEO Mark Beni off may still be talking about Agent Force on his earnings call that began last night. He was that excited about this stuff. way more than Wall Street, which pushed the stock to a record low valuation ahead of the better thanex expected report [music] last night. Snowflake's results, meanwhile, ...

Market Overview - All three major indices opened mostly flat, with the Dow up about 0.1%, NASDAQ up about 0.2%, and S&P 500 also showing slight gains [1] - Jobless claims came in lower than expected, and November layoffs were less than in October, contributing to market stability [1] Salesforce - Salesforce reported better-than-expected results, but the stock is still down over 27% year-to-date, trading at a record low valuation prior to the report [1][10] - The company highlighted its AI tool, Agent Force, which has seen a significant increase in paid deals, now totaling 9,500, up from 3,500 in the previous quarter [11][12] Snowflake - Snowflake's shares fell about 9% at the open due to a disappointing outlook, with a slower product revenue growth forecast for the fourth quarter [1][14] - Despite the drop, 13 brokerage firms raised their price targets on Snowflake, indicating a generally optimistic outlook from analysts [15] Nvidia - Nvidia's CEO Jensen Wong has been actively promoting the company, appearing on podcasts and engaging with lawmakers, which may enhance brand visibility [2][4] - The company is facing increasing competition from firms like Google and Amazon, which are also developing their own chips [2][3] - Nvidia's stock was up nearly 0.8% following Wong's public appearances, reflecting investor interest in the company's AI capabilities [1] Google - Google shares have risen 16% since the launch of its Gemini 3 model on November 18, indicating strong market reception [5] - The company is positioned well in both software and hardware sectors, potentially benefiting from its dual focus [6] C3 AI - C3 AI reported a 49% growth in bookings, with its federal business growing 89% year-over-year, indicating strong demand for enterprise AI solutions [18][19] - The company is focusing on key use cases such as industrial asset performance and supply chain optimization to drive growth [22] - C3 AI's new CEO emphasized the importance of demonstrating economic value to customers to secure enterprise-wide agreements [21][24]

Market Overview - Major averages on Wall Street closed higher for the second consecutive day, with the Dow up nearly 1%, Nasdaq composite up 2%, and S&P 500 up 0.3% [1] - The US dollar index has moved lower, supporting higher asset prices [2] Sector Performance - Energy, financials, and consumer discretionary sectors led the market today [2] - Tesla's stock rose by 4%, while Alphabet increased by 1%. In contrast, Microsoft and Nvidia saw declines of 2% and a mixed performance, respectively, due to concerns over AI sales quotas [3] Cryptocurrency and Commodities - Bitcoin experienced a 2% increase over the last 24 hours, rising from $81,000 in November to $93,000, with traders speculating it could reach $100,000 [4] - Gold futures are currently at $4,238 per ounce, with silver futures also near highs [5] Economic Indicators - Weak labor market data has reinforced expectations that the Federal Reserve will cut rates next week, which could be a key catalyst for the market rally [5] AI and Technology Insights - AI spending is highlighted as a significant driver for market performance, with expectations of broadening equity markets due to various tailwinds including deregulation and continued rate cuts [7][8] - The differentiation between winners and losers in the AI sector is expected to become more pronounced as companies like Meta and Oracle tap into debt markets for AI expansion [10][12] Salesforce Performance - Salesforce reported a Q3 earnings per share of $3.25, exceeding expectations of $2.86, with revenue expectations for Q4 between $11.13 billion and $11.23 billion [25][26] - The annual recurring revenue for Agent Force and Data 360 saw significant year-over-year growth of 114% and 333%, respectively, indicating strong investor confidence [27][28] Investment Strategies - Financials, healthcare, and energy sectors are recommended for overweight positions due to anticipated growth and regulatory changes [20] - Concerns exist regarding the lower-end consumer due to a K-shaped recovery, suggesting caution in consumer sector investments [23] Stock Analysis - Apple has shown strong performance, breaking out of previous highs and aligning with AI narratives [50][51] - Amazon is currently in a trading range, with expectations for a breakout in the new year [52] - Microsoft and Nvidia are experiencing consolidation after recent peaks, with ongoing scrutiny regarding their valuations [55][57] - Bank of America and JP Morgan are noted for their recent performance, with Bank of America hitting record highs [59][60] Quantum and Stable Investments - Companies like IBM are recognized for their stability and involvement in the quantum space, appealing to investors seeking both growth and security [63][66]

Market Overview - The market is experiencing modest gains, with the S&P 500 close to reclaiming its record high after two consecutive days of increases [2][5] - The Dow Jones Industrial Average rose by approximately 0.9%, while the S&P 500 added about 21 points, or 0.3% [5][6] - The Nasdaq composite showed minimal growth, with big tech stocks lagging behind, indicating a mixed performance across sectors [6][8] Sector Performance - Energy, financials, industrials, and consumer discretionary sectors posted significant gains, while communication services, utilities, and information technology sectors lagged [8][6] - The Dow transports and Russell 2000 indices outperformed, with increases of 2% and 1.9%, respectively [6] Company Earnings - Salesforce reported a fourth-quarter revenue forecast of $11.13 billion to $11.23 billion, exceeding street estimates, leading to a stock increase of about 6% in after-hours trading [9][10] - The third-quarter adjusted EPS for Salesforce was $3.25, surpassing the estimate of $2.86, while revenue was in line with expectations at $10.26 billion [10][11] - Five Below reported a 23% increase in net sales, reaching $1 billion, and provided a positive outlook for the next quarter, guiding for net sales between $1.58 billion and $1.61 billion [16][17] Technology Sector Insights - Salesforce's AI tool, Agent Force, has closed over 9,500 paid deals, contributing to an annual recurring revenue of $1.4 billion [19][20] - Snowflake's revenue for the most recent quarter was $1.16 billion, in line with estimates, but shares fell by about 5% in after-hours trading due to only slight increases in product revenue forecasts [22][23] Consumer Spending Trends - The retail sector shows a bifurcated consumer landscape, with high-end consumers continuing to spend while middle-income consumers are trading down [30] - Overall, the earnings season indicates better-than-expected performance in business and consumer spending, with a cautious outlook for future consumer behavior [28][29]

Group 1: CrowdStrike - CrowdStrike is experiencing positive momentum with multiple price target hikes from analysts, indicating strong bullish sentiment [1][2][3] - JP Morgan Chase raised its price target to $580 from $500, maintaining an overweight rating, anticipating strong third-quarter results and continued momentum into the next fiscal year [2] - Key Bank also increased its target to $570 from $510, while Wedbush reiterated a price target of $600, highlighting CrowdStrike as the "golden standard of cyber" [3][4] - Analysts believe the revenue estimate of over $1.2 billion for the third quarter is easily beatable due to CrowdStrike's agent security strategy [4] - Year-over-year comparisons show improved performance as CrowdStrike recovers from previous outages, positioning it favorably in the market [5] Group 2: Snowflake - Snowflake's stock has been a strong performer, up over 60% year-to-date, despite a slight decline recently [7] - Rosenblatt raised its price target for Snowflake to $275 from $250, maintaining a buy rating ahead of its earnings report [8] - The forecast for Q3 product revenue growth is 27%, down from 32%, driven by better-than-expected cloud service provider results and strong customer feedback [9] - Analysts see AI adoption as a significant growth engine for Snowflake, with over 4,000 customers using its platform weekly, indicating strong customer retention [9] Group 3: Salesforce - Oppenheimer has cut its price target for Salesforce to $300 from $315, citing lower software group multiples, but maintains an overweight rating [12] - Analysts believe Salesforce is undervalued and has financial strength, despite challenges with its AI initiative, Agent Force [12][13] - The company is viewed as being in transition towards its next-generation AI platform, which analysts expect will be successful in the ongoing AI transition [13]

Financial Data and Key Metrics Changes - Endava's revenue for Q1 FY2026 was GBP 178.2 million, an 8.6% decrease from GBP 195.1 million in the same period last year, with a constant currency decrease of 7.3% [24][26] - Loss before tax for the quarter was GBP 8.5 million, compared to a profit of GBP 4.2 million in the prior year [25] - Adjusted PBT was GBP 9.9 million, down from GBP 19.2 million year-over-year, with an adjusted PBT margin of 5.5% compared to 9.9% [25] - Adjusted diluted EPS was GBP 0.15, down from GBP 0.25 in the same period last year [25] - Adjusted free cash flow increased to GBP 9.2 million from GBP 3.5 million year-over-year [28] Business Line Data and Key Metrics Changes - Revenue from the 10 largest clients accounted for 36% of total revenue, consistent with the previous year, but average spend per client decreased from GBP 7.1 million to GBP 6.4 million, a 9.9% decline [25][26] - North America contributed 42% of revenue, Europe 24%, the U.K. 28%, and the rest of the world 6% [26] - Revenue from North America decreased by 1%, while Europe saw a decline of 12.8% and the U.K. decreased by 17.9% [26][27] Market Data and Key Metrics Changes - The unexpected client credit impacted performance, but the reclassification of a large payments client from the U.K. to North America offset this [26][27] - The rest of the world saw a revenue increase of 9% [27] Company Strategy and Development Direction - Endava is focusing on AI-native transformation, with the DavaFlow model designed to integrate AI into every phase of the delivery lifecycle [18][20] - The company is committed to disciplined cost management while pursuing growth opportunities, particularly in AI-related engagements [9][24] - Partnerships with major technology firms, including OpenAI and Google Cloud, are being leveraged to enhance service offerings and drive growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in transitioning business models and delivery approaches due to the rapid acceleration of AI [7][49] - The company expects gradual recovery in the latter half of the fiscal year, supported by large strategic deals [84] - Management emphasized the importance of shifting to outcome-based deals to improve margins and client benefits [49] Other Important Information - The company ended the quarter with 11,636 employees, a 2% decrease from the previous year, while continuing to expand its AI talent pool [21] - Capital expenditure as a percentage of revenue was 1.7%, up from 0.6% in the prior year [29] - The share repurchase program remains active, with $34.1 million remaining for repurchase [29] Q&A Session Summary Question: Can you share more detail on the unexpected client credit? - The credit was procedural and not related to remediation work, impacting revenue guidance but not indicative of client relationship decline [33][34] Question: Has there been any unusual client churn this quarter? - There has not been an increase in client churn, and the credit was from an ongoing relationship [39] Question: How are productivity gains from DavaFlow quantified? - DavaFlow is expected to drive significant productivity improvements, with potential gains in the 5x-10x range [40] Question: What is the strategy to navigate changes in business models? - The strategy focuses on accelerating the shift to AI-native approaches and increasing outcome-based deals to improve margins [49] Question: Can you provide details on the $100 million deal with a payments company? - The deal is a five-year commitment primarily focused on new development rather than managed services, representing significant new revenue [78] Question: How are capital allocation priorities balanced between AI investment and share buybacks? - The company continues to invest in AI while maintaining a share buyback program, prioritizing long-term profitability over short-term margins [60]

Core Insights - Salesforce Inc (NYSE:CRM) has faced challenges in its core business due to an early and rushed launch of its AI technologies, which has led to underperformance compared to competitors like ServiceNow [1][2] - The complexity of changing business software has resulted in corporate America being unprepared for Salesforce's AI products, as companies have high expectations for software accuracy and reliability [2] - Despite concerns about slowing growth and the impact of AI on market share, Salesforce is expected to benefit from AI advancements due to its deep integration within enterprise systems and a strong customer retention rate [4] Company Overview - Salesforce is recognized as the leading SaaS vendor for customer relationship management (CRM) and salesforce automation (SFA) software, offering a wide range of products including marketing automation and analytics [3] - The company is expanding its product suite with multiple cloud offerings and proprietary data, positioning itself as an AI innovation leader [4] - Salesforce maintains a scalable business model with high margin potential, supported by a loyal customer base and recurring revenue streams [4]