Salesforce (CRM)

Shares in Salesforce plunged by over 16% in pre-market trading after the business software maker reported weaker-than-expected revenue and issued guidance that trailed Wall Street’s expectations.

Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2bn to $9.25bn in revenue. Analysts had expected $2.40 in adjusted earnings per share on $9.37bn in revenue.

Net income jumped to $1.53bn, or $1.56 per share, from $19m, or 20 cents per share a year ago.

The company's first-quarter adjusted earnings per share jumped 44% to $2.44, higher than expectations of $2.38.

Salesforce left its fiscal 2025 revenue forecast unchanged, but cut its operating margin expectations to 19.9% from its prior forecast of around 20.4%.

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Chief executive officer Marc Benioff underscored the recent emphasis on profit and the long-term potential of artificial intelligence as positive for the company.

“We’re incredibly well positioned to help companies realise the promise of AI over the next decade,” Benioff said in a statement.

Dr Martens (DOCS.L)

Dr Martens is embarking on a major cost-cutting plan after the bootmaker was hit by plummeting demand in the US.

The company said global pre-tax profits in the 12 months to March fell 43% to ￡97m due to a slump in its US wholesale business.

Revenue fell 12% to ￡877m against expectations of ￡900m, while operating profit plunged by a third to ￡122m, compared with forecasts of ￡125m.

The London-based company is aiming to save as much as ￡25m in the upcoming financial year. The firm explained that it would achieve these cost savings through improvements in "organisational efficiency and design, better procurement and operational streamlining."

Dr Martens has been struggling to drive demand among US consumers, its biggest market, in recent years.

Kenny Wilson, chief executive of Dr Martens, said: "We are clear that we need to drive demand in the USA to return to growth in (financial year 2026) onwards and are executing a detailed plan to achieve this, with refocused and increased USA marketing investment in the year ahead.

“We are also announcing a cost-action plan across the group, targeting savings of ￡20m to ￡25m. I am confident that the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.”

Wilson is stepping down before the end of the financial year to be replaced by Ije Nwokorie, currently chief brand officer at the business.

Saudi Aramco (2222.SR)

Saudia Arabia is preparing to formally launch a secondary offering of shares in oil major Saudi Aramco as soon as Sunday, a move that could raise over $10bn, the Wall Street Journal first reported.

The Saudi state and its sovereign wealth fund, the Public Investment Fund, own the vast majority of Aramco, with just 1.5% of the company traded publicly on the Tadawul, the kingdom’s stock exchange, following its first-ever public offering in 2019.

A separate Bloomberg report added that the stock sale has attracted informal interest from investors across the Middle East and Europe, totalling over $10bn.

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The offering will likely be priced at a further discount of as much as 10% to the trading price, though that level could change based on investor demand.

The Aramco sale comes at a pivotal time for Saudi Arabia, which has been heavily injecting capital into its economy to fund a series of major projects and an ambitious Vision 2030 plan to move its GDP away from oil and gas and into artificial intelligence, sports and tourism.

The proceeds will also help balance the kingdom’s budget. Saudi Arabia in May forecast a budget deficit of 79 billion Saudi riyals ($21bn) for the year, as well as a fiscal deficit in 2025 and 2026.

The Walt Disney Company (DIS)

Activist investor Nelson Peltz has sold his entire stake in Disney after losing a lengthy battle for a place on the company’s board.

Peltz sold all of his Disney stock at roughly $120 a share, making about $1 billion on the position.

The development, first reported by CNBC, comes after Disney successfully fended off Peltz in his quest to secure board seats at the company, officially ending a highly contested proxy battle that has plagued the entertainment giant for months.

Peltz began criticising Disney’s management under Robert A. Iger, the chief executive, early last year, pointing to the company’s streaming strategy, lagging stock price and succession planning.

The billionaire head of the hedge fund, Trian Fund Management, controlled about $3.5bn in Disney stock, a vast majority of it owned by Ike Perlmutter, a former chairman of Marvel Entertainment.

Disney shares are up about 12% since the start of the year but have fallen roughly 15% since the company defeated Peltz in its proxy fight.

Watch: Salesforce stock is sinking on its Q2 earnings forecasts

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