Stock Market Disappointment: Salesforce Falls Short of Expectations - AI expert Salesforce underperforms expectations on Wall Street
Salesforce, the San Francisco-based tech giant, is making waves in the industry with its latest developments, despite falling short of its projections for the current quarter. The company's CEO, Marc Benioff, recently stated that the first eight months of the year had been the "most exciting months of my career."
In a bid to impress, Salesforce is focusing on AI agents that can handle multi-step tasks, such as customer service. The company demonstrated the software's potential by handling a hypothetical phone call for a department store chain regarding the exchange of a too-small sweater.
However, the company's business outlook has disappointed the stock market. Salesforce beat analyst expectations in the last quarter, with a net income of $1.89 billion, a 32% rise year-over-year, and an overall revenue of $10.24 billion, a 10% increase from the previous year. Despite this, Salesforce forecast revenues between $10.24 billion and $10.29 billion for the current quarter, falling short of analysts' expectations of $10.29 billion on average.
In a move to streamline operations, Salesforce has implemented job cuts through AI. CEO Marc Benioff mentioned that the company has been able to cut 4,000 of its 9,000 customer service jobs through AI automation, reducing the support workforce from 9,000 to about 5,000 employees and having AI agents handle half of all customer interactions.
The stock fell by as much as four percent in after-hours trading following the announcement of the lower-than-expected forecast for the current quarter. Despite this, Salesforce remains a significant player in the tech industry, with its innovative approach to AI and customer service continuing to shape the future of the sector.
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