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Shares of cloud data storage company New Relic (NEWR)  were falling sharply Wednesday following a weak-than-expected revenue outlook and subsequent downgrade from analysts at Raymond James. 

The company reported first-quarter earnings of 19 cents a share on revenue of $141 million, ahead of analysts' expectations for earnings of 8 cents share on revenue of $139.6 million. 

"We launched New Relic One, released monitoring for AWS Lambda, and finalized operating model enhancements to product and sales organizations during the first quarter," said CEO Lew Cirne. "Navigating these changes proved challenging and impacted our Q1 results. However, we believe that these strategic initiatives will enable us to drive sustainable growth by delivering incredible products that delight our customers."

However, the company forecast second-quarter revenue between $143 million and $145 million with earnings between 14 cents and 16 cents a share. Wall Street expects the company to report revenue of $146 million with earnings of 12 cents.

Compounding the stock's issue was a bearish Raymond James note that had the analysts downgrade the stock to market perform from outperform. 

The stock was tanking 32.58% to $56.47 in trading Wednesday.