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Box shares are getting smoked after earnings

Mar 12, 2015, 19:10 IST

Box shares are getting smoked this morning after the company delivered its first ever earnings report.

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The stock is down 18% at the open of the market. It's trading at $16.81.

Box reported a $1.65 EPS loss, which was worse than analyst expectations of a $1.17 loss.

Box CEO Aaron Levie tried to explain on the earnings call yesterday that the company didn't miss guidance, but that Wall Street analyst firms simply did their math wrong when calculating EPS. Apparently, the markets didn't buy it, figuratively or literally.

When Box first had its IPO in January, it was priced at $14 a share before popping up as high as $24.73. While industry watchers like CNBC's Jim Cramer have urged people to buy at $18 a share, many more investors have expression skepticism of the company's stock price, given its incredible (but shrinking) burn rates on marketing and sales expenses.

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