SaaS Stocks Stage Dramatic Rebound on Strong Earnings
Salesforce's (CRM) stock surged 23% in a single day after reporting better-than-expected quarterly earnings, narrowing its year-to-date decline to around 4%. The software-as-a-service (SaaS) sector staged a dramatic rebound on Thursday, with ServiceNow, Figma, and Asana also rallying.
The cybersecurity sector performed strongly, with CrowdStrike jumping 20.5% and Okta soaring 29%, both of which reported earnings the same day. KeyBanc analyst Jackson Ader said: 'We're all gradually realizing that this industry is going to be more resilient than expected.'
While Salesforce's performance was not particularly outstanding, with revenue growth coming in at 11% and organic growth at 6.4%, the company raised its full-year revenue outlook, which was seen as a positive signal by investors.