Last week in the stock market — pick your market, pick any market, it seems — continues into the new month and into the short holiday trading week.
The Connected Economy 100 (CE100™) index followed suit, and to that end, the CE100 index lost 3.9% for the week, outpacing the nearly 4% loss seen with the broader tech-heavy Nasdaq.
CE100 relative performance
Source: PYMNTS.com
That decline was led by the “Enablers” segment, which lost 8.7%, followed by the “Jobs” segment, which lost 5.3%. In total, nine sub-indices were in the red, only the “shop” section ended in black.
Earnings season is drawing to an inevitable conclusion, and this time, investors seem wary of slowing growth for the “pick and shovel” players that enable enterprise customers to adopt advanced technologies and transform their own operations.
For example, MongoDB lost more than 30.7%. The enterprise technology provider announced last week that total revenue for the second quarter of fiscal 2023 was $303.7 million, a 53 percent year-over-year increase. Subscription revenue was $291.6 million, a 52% year-over-year increase, the company said.
But during a conference call with analysts, Chief Financial Officer Michael Gordon said, “Our expectation [was] The mid-market slowdown we saw in Europe in Q1 will be global in Q2.
“That’s what we experienced, but the decline was more significant than we expected,” Enterprises said, noting that MongoDB’s consumption growth has also slowed.
Meanwhile, C3.ai, a provider of enterprise artificial intelligence software, reported revenue of $65.3 million, down 23 percent. The stick came down when management lowered its revenue growth expectations, saying it was shifting its business model to a subscription-based model rather than a subscription model.
CEO Tom Siebel said during the earnings call, “As the market anticipates a recession, it’s clear that the comments we’ve all been hearing recently about market volatility, budget cuts and lengthening sales cycles are true. That was our experience last quarter as well.”
“Our customers and prospects seem to be anticipating a recession, and we are seeing customer buying behavior in line with expectations.”
Nvidia also lost 16.1%, after the company said this week it could lose up to $400 million in quarterly revenue because the United States imposed new licensing requirements on chips sold and shipped to China.
In business names, even positive results weren’t enough to win investors’ favor. CrowdStrike lost 11.4%, as it reported second-quarter 2023 results on revenue of $535.2 million, an increase of 58%.
In a conference call, CrowdStrike founder and CEO George Kurtz told analysts that growth has come from customers looking to build their security under a single cloud-based platform, with the company’s Falcon security platform receiving additional modules.
Kurtz said, “We added over 1,700 new customers, another first for the company. Total retention rose to a new record for the second consecutive quarter, and dollar-based net retention reached its highest level in seven quarters.
He gets only one pole
These losses offset a few positive returns seen in the single pillar, the department store, which rose 1.8%.
watch out: Chinese ecommerce company Pinduduo launches American offshoot
Digging into that group, Pinduodu stood out with a 25% bump for the week. As reported last week, the Chinese ecommerce company made its first overseas expansion of an online shopping site in the US. The site, called Temu, was launched at the beginning of the month.
New PYMNTS Survey Finds 3 in 4 Consumers Strong Interest in Super App
In Care Of The new study by PYMNTS, “The Super Up Shift: How Consumers Want to Save, Shop and Spend in the Connected Economy,” in partnership with PayPal, analyzed the responses of 9,904 consumers in Australia, Germany, the UK and the US. And instead of using dozens of individual ones, there has been a strong demand for a single versatile super app.
https://www.pymnts.com/technology/2022/technology-making-health-insurance-more-accessible-markets/part/
