Salesforce (CRM) fell to limit the Dow’s advance in the last week. After announcing a co-CEO’s departure and weak Q3 results, CRM stock dipped.
Salesforce earned $1.40 a share non-GAAP. Revenue growth of 14.3% Y/Y is not impressive. In 2023, its revenue of up to $31 billion translates to non-GAAP EPS of up to $4.94.
Investors should avoid Salesforce until profit growth recovers in mid-2023.
PayPal (PYPL) risks losing more customers and reporting lower transactions. The U.S. Internal Revenue Service will get reports of Venmo transactions valued at over $600. Small transactions that had no income tax are under review. Customers could abandon PayPal, opting for traditional banks instead of managing transactions.
Investors are wary of fintech. SoFi, PayPal, Block (SQ), Affirm, and Upstart (UPST) are stocks that are at high risk of downside. Financial firms like Citigroup (C) and Morgan Stanley (MS) are more attractive. Furthermore, Visa (V) and Mastercard (MA) are better investments.
In the semiconductor market, Micron (MU) is trending lower. Weak computer demand will hurt sales of NAND (storage) and DDR (memory). In addition, Marvell’s (MRVL) weak Q3/22 report suggests more downside ahead. The firm blamed excess inventory for hurting prices.
