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Rally in Tech Stocks: Salesforce, Okta, Marvell Surge on Earnings

AInvestWednesday, Dec 4, 2024 10:42 am ET
3min read


The Dow Jones Industrial Average (DJIA) received a boost on Wednesday morning, driven by robust earnings reports from technology companies. Stock futures linked to the S&P 500, Dow Jones, and Nasdaq were up 0.3%, 0.4%, and 0.7% respectively, as investors reacted positively to the strong results.

Salesforce (CRM), a leading cloud software company, reported third-quarter earnings that exceeded analyst expectations. Revenue grew 8% year-over-year to $9.44 billion, while earnings per share (EPS) rose 25% to $1.58. The company's Agentforce suite, an AI-driven agent system, has been a significant driver of growth. Salesforce's stock price has surged 30% since its September unveiling, reflecting investors' confidence in the company's long-term prospects.

Okta (OKTA), an identity management company, also reported impressive results. The company swung to profitability, with net income of $16 million, or 9 cents per share, compared to a net loss of $81 million in the same period last year. Revenue increased 14% to $665 million, driven by subscription revenue of $651 million. Okta's strong performance reflects the growing demand for secure identity management solutions.

Marvell Technology (MRVL), a semiconductor company, also reported better-than-expected earnings. Revenue grew 17% year-over-year to $1.42 billion, while adjusted EPS of $0.46 surpassed estimates of $0.40. The company's strong performance aligns with trends observed in other semiconductor companies, such as Nvidia and AMD, and indicates a robust market outlook for the broader chip industry.



Investors are optimistic about the future of these technology companies, as their earnings reports reflect strong growth and innovation. The surge in tech stocks has contributed to the positive mood in the market, as major indexes continue to hit record highs.

The Federal Reserve's upcoming policy meeting and the November jobs report will be critical factors for investors to watch in the coming days. Market participants are eager to learn more about the central bank's plans for interest rates and the overall health of the economy.



In conclusion, the positive earnings reports from Salesforce, Okta, and Marvell have driven a rally in tech stocks, contributing to the overall bullish sentiment in the market. As investors continue to monitor the economic landscape and central bank policies, they remain optimistic about the long-term prospects of these innovative companies.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.