Salesforce stock (CRM) climbed on Tuesday following the company’s third-quarter earnings report, which fell short of estimates due to a one-time investment loss. However, both revenue and a key performance metric surpassed expectations.
Salesforce released its October-quarter earnings report after the market closed. The company reported adjusted earnings of $2.41 per share, which included a 17-cent loss due to investments.
Operating margin was 33.1%, exceeding estimates of 32.2%. Net income grew 25% to $1.5 billion, surpassing expectations.
The San Francisco-based enterprise software company noted that revenue increased by 8% to $9.44 billion.
For Q3, analysts had anticipated adjusted EPS of $2.44 on revenue of $9.3 billion.
A crucial financial metric for Salesforce stock is the current remaining performance obligations (CRPO), which encompasses deferred revenue and order backlog.
In Q3, CRPO increased by 10% to $26.4 billion, surpassing estimates of $26.1 billion.
For the January quarter, Salesforce projected revenue of $10 billion, aligning with consensus estimates.
In after-hours trading, Salesforce stock surged over 6%, reaching $353.85.
Heading into the Salesforce earnings release, CRM stock was up 25% this year.
Furthermore, Salesforce has recently shifted its focus to autonomous AI agents, leading to heightened expectations for monetizing its artificial intelligence products. The company is integrating AI technology across its extensive suite of customer management, customer service, and marketing automation solutions.
Additionally, Salesforce provides access to business software applications through a subscription model. Its software assists organizations in streamlining sales operations and managing customer relationships. The company has also broadened its offerings to include marketing, customer service, and e-commerce solutions.
Current Price Action:
Observe the recent price movements and key support and resistance levels.
Watch for trends in the stock's performance in the context of broader market movements.
Moving Averages:
Check the 50-day and 200-day moving averages to assess the stock's short-term and long-term trends.
A crossover of these moving averages can indicate potential buy or sell signals.
Relative Strength Index (RSI):
Analyze the Relative Strength Index to determine if Salesforce is overbought (above 70) or oversold (below 30).
This can help gauge potential price reversals.
Volume Analysis:
Look at trading volume patterns for signs of strength or weakness in price movements.
High volume on upward movements can indicate strong buyer interest.
Candlestick Patterns:
Identify key candlestick formations that may signal trend reversals or continuations.
Patterns like doji, hammer, or engulfing can provide insights into market sentiment.
Bollinger Bands:
Use Bollinger Bands to assess volatility and potential price breakouts.
A stock nearing the upper band may indicate overbought conditions, while prices near the lower band may suggest oversold conditions.
Overall, a comprehensive technical analysis of Salesforce stock involves evaluating price trends, moving averages, RSI, volume, candlestick patterns, and Bollinger Bands to form a well-rounded view of its market position and potential future movements.
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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
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