Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 11.9% over the last six months. This drop was much worse than the S&P 500’s 1.6% fall.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Shares of cloud content storage and management platform Box (NYSE:BOX)
jumped 17.6% in the morning session after the company reported a "beat and raise" quarter (fiscal Q1 2026).
Box’s Q1 earnings and revenue beat prompts analysts at Raymond James, Morgan Stanley, and JPMorgan to raise price targets and express confidence in future growth.
Cloud content storage and management platform Box (NYSE:BOX) fell short of the market’s revenue expectations in Q1 CY2025 as sales rose 4.4% year on year to $276.3 million. Its non-GAAP EPS of $0.30 per share was 17.2% above analysts’ consensus estimates.
CFO Dylan Smith said the company achieved robust first-quarter results, surpassing its guidance and delivering double-digit growth in billings and short-term RPO.
Cloud content storage and management platform Box (NYSE:BOX) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 4.4% year on year to $276.3 million. Guidance for next quarter’s revenue was optimistic at $290.5 million at the midpoint, 2.6% above analysts’ estimates. Its non-GAAP profit of $0.30 per share was 17.2% above analysts’ consensus estimates.
