Longest Losing Streak Since 2008 Despite Acquisition

  • Salesforce acquires data-protection provider Own Company for $1.9 billion
  • Stock is on pace for its longest losing streak since 2008
  • Shares dropped 1.7% to $242.08 in early afternoon trading
  • Deal expected to boost free cash flow in the second year after closing
  • Financial guidance remains unchanged
  • UBS analysts maintain Neutral rating on the stock

Salesforce has announced the acquisition of data-protection provider Own Company for $1.9 billion, as part of its mission to protect customer data and accelerate AI-driven innovation. However, this news hasn’t been enough to halt the company’s stock decline, which is currently experiencing its longest losing streak since 2008. The stock dropped 1.7% in early afternoon trading on Friday. Despite reporting higher revenue and earnings than expected for the July quarter, shares have declined every trading day since that announcement. UBS analysts maintained a Neutral rating on the stock.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Salesforce’s acquisition of Own Company and its expected impact on the company’s financials. It also includes relevant details such as the transaction timeline, CEO’s statement, and stock performance. However, it contains some speculation from UBS analysts which could be considered a personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about Salesforce’s acquisition of Own Company and its impact on the stock market. However, it contains some filler content with unrelated information such as the mention of Workday and UBS analysts’ opinions which may not be essential for understanding the main topic.
Public Companies: Salesforce (CRM), Workday (WDAY)
Private Companies: Own Company
Key People: Sam Gutmann (CEO of Own), Karl Keirstead (Analyst at UBS), Seth Gilbert (Analyst at UBS)

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Financial Relevance: Yes
Financial Markets Impacted: Salesforce’s stock price and the enterprise software industry
Financial Rating Justification: The article discusses Salesforce’s acquisition of a data-protection provider, its expected impact on financial guidance, and the company’s stock performance. This pertains to financial topics such as mergers and acquisitions, company performance, and stock market movements.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
Deal Size: 1900000000
Move Size: 1.7%
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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