Why the CRM Weekly
Options Trade was Originally Executed?…..
of Salesforce.com, inc. (NYSE:CRM), the cloud software giant, were
moving higher today after the company announced a price increase across its
announcement Tuesday morning, Salesforce said it would be increasing the list
price by an average of 9% across key product lines like its sales cloud,
service cloud, marketing cloud, and Tableau.
explained the move by saying it was its first list-price increase in seven
years and that it had delivered 22 new releases since then, representing more
than $20 billion in research and development. It also touted its new artificial
intelligence (AI) products, including AI Cloud, Einstein GPT, and others.
sells software under a subscription model. Its software helps businesses
organize and handle sales operations and customer relationships. Also, the
company has expanded into marketing, e-commerce and data analytics.
worth noting the changes represent Salesforce's first list price increases in
seven years, in which time the company has delivered 22 product releases and
thousands of new features and enhancements, including generative AI-related
developments," Truist analyst Terry Tillman said in a note to clients.
Salesforce stock climbed 3.9% to close at $221.17 on the stock market yesterday.
With the gain, CRM stock has jumped 66% in 2023. Also, Salesforce holds an
entry point of $225.10.
The CRM Weekly
Options Trade Explained.....
** OPTION TRADE: Buy CRM JUL 28 2023 225.000 CALLS - price at last close was $3.75 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the CRM Weekly Options (CALL) Trade on Wednesday, July 12,
2023 for $4.06.
Sold half the CRM Weekly Options contracts on Thursday, July 13, 2023, for $8.67; a
potential profit of 114%.
Holding the remaining CRM weekly options contracts
for further profit before expiry.
Don’t miss out on further trades – become a
Further Catalysts for the CRM Weekly Options Trade…..
enterprise software maker has taken steps to improve profit margins amid
pressure from activist investors. They include Elliott Management, Starboard
Value, Third Point, ValueAct Capital and Inclusive Capital.
Salesforce in January said it would cut 10% of its workforce and reduce office
space as part of a restructuring plan.
which shows the company's confidence at a time when much of the software
industry is struggling with a slowdown in demand, earned it a round of applause
from analysts. Raymond James maintained a strong buy rating on the
stock, saying the price hikes aren't surprising and should be well received by
Evercore ISI also called the price increase
"pretty reasonable" as most of its peers push through annual
increases of 4% to 5%, and said the move should be a tailwind going into 2024.
The firm kept an outperform rating on the stock and a $240 price target,
implying a 9% upside after today's gains.
According to the issued ratings of 39 analysts in the last
year, the consensus rating for Salesforce stock is Moderate Buy based on the
current 1 sell rating, 13 hold ratings, 24 buy ratings and 1 strong buy rating
for CRM. The average twelve-month price prediction for Salesforce is $220.97
with a high price target of $275.00 and a low price target of $150.00.
confidence has returned as the company cut costs through layoffs, real estate
rationalization, and other moves, and sharpened its focus on profitability
after developing a reputation for wasting money on acquisitions and other poor
hikes should give income a significant lift since the additional revenue should
flow through directly to the bottom line, and the company is unlikely to see
much attrition given the sticky nature of cloud software products.
Salesforce has a debt-to-equity
ratio of 0.16, a quick ratio of 1.02 and a current ratio of 1.02. Salesforce,
Inc. has a 12-month low of $126.34 and a 12-month high of $225.00. The
business’s 50-day moving average price is $208.76 and its 200 day moving
average price is $184.27. The stock has a market cap of $206.44 billion, a P/E
ratio of 550.04, and a price-to-earnings-growth ratio of 2.07 and a beta of 1.20.