more downside before earnings
Box (NYSE: BOX) stock price has been on a steady downward trend over the past few months as concerns over the tech sector remain. Shares fell to a low of $24.61, the lowest since February this year. It has fallen more than 23% from its year-to-date peak of $33, taking its market capitalization to more than $3.9 billion.
Box Earnings Overview
Box is a small-cap technology company that provides cloud storage solutions to businesses and individuals. It operates in a relatively competitive industry dominated by companies like Yandex, Google, Microsoft, Amazon, Apple and DropBox.
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In addition to cloud storage, Box provides other services to its global customers. For example, it competes with DocuSign by offering electronic signature services. It also offers Box Relay, a product that automates workflows.
Box has had a lot of success over the past few years. On the one hand, the company serves more than 100,000 customers worldwide. Its clients include approximately 67% of all Fortune 500 companies. Some of its top clients are companies like Morgan Stanley, Farmers Insurance, Intuit, and Broadcom.
Box’s stock price will be in the spotlight this week as the company releases its quarterly results. Analysts expect its revenue to rise to $234 million in the first quarter from the previous $233.36 million.
They also expect him to lose around $0.04 per share. Still, judging from the past, Box will likely beat analysts’ forecasts since it has done so every quarter since its IPO.
In addition to the key figures, analysts will be looking at its forecast given that its activity is expected to slow down. For one thing, businesses that needed cloud storage have already subscribed. Like other companies, the stock will react to the wage pressure that many companies are facing. Another key thing to watch will be its Box Sign product and its adoption internationally.
Box Inventory Price Forecast
Looking at the daily chart, we see that Box stock price has been on a strong downtrend over the past few weeks. Along the way, the stock managed to break below the important support at $28.15, which was the December 28 high. Stocks moved below the ascending trendline shown in black.
The stock broke below the 25- and 50-day moving averages, while the Relative Strength Index (RSI) trended lower. I expect the stock to fall sharply after its earnings as companies slow down their investments.
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