Why Salesforce Shares Jumped Friday!…..
horrendous showing in 2022 (shares fell 48%), Salesforce stock has rallied nearly
60% so far in 2023. And that includes a post-earnings dip due to some mild
investor disappointment with a lack of a more meaningful upgrade in financial
Salesforce kicked off its first quarter
fiscal 2024 (ended April 30, 2023) in strong fashion. Revenue was up 11% year
over year to $8.25 billion, about $70 million above guidance provided three
During the last
earnings call, Benioff talked at length about the transformative force that
generative AI will be. More importantly to shareholders, though, he added
making Salesforce "the most profitable enterprise software company in the
world" to the list of lofty aspirations.
Why the Salesforce Weekly
Options Trade was Originally Executed?
inc. (NYSE:CRM) reported better-than-expected financial results for the first quarter of
fiscal 2024. The enterprise cloud computing solution provider’s first-quarter
fiscal 2024 non-GAAP earnings increased 71.4% to $1.69 per share from 98 cents
reported in the year-ago quarter. The figure surpassed the Consensus Estimate
company’s ongoing restructuring initiative, which includes trimming the
workforce, benefited first-quarter non-GAAP earnings by 72 cents per share.
This was a
decent quarter with a profit rise of 68% year-to-date by the market close. With
AI claimed to be the company’s biggest assets, Salesforce promises to be a
worthy rival to Microsoft and Google in this arena.
stock has gained 60% in 2023. CRM stock has outperformed the Nasdaq composite
and the iShares Expanded Tech-Software ETF (IGV). The Nasdaq has gained 27% in
The CRM Weekly Options Trade Explained.....
** OPTION TRADE: Buy CRM JUN 23 2023 220.000 CALLS - price at last close was $2.73 - 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, June 07,
2023 for $1.05.
Sold half the CRM weekly options contracts on Friday, June 09, 2023 for $4.82; a potential profit of359%.
Total Dollar Profit is $482 - $105 (cost of contract)
the remaining CRM weekly options contracts for further profit before expiry.
Don’t miss out on further trades – become a member today!
Inc. provides customer relationship management technology that brings companies
and customers together worldwide.
360 platform empowers its customers to work together to deliver connected
experiences for their customers. The company's service offerings include Sales
to store data, monitor leads and progress, forecast opportunities, gain
insights through analytics and relationship intelligence, and deliver quotes,
contracts, and invoices; and Service that enables companies to deliver trusted and
highly personalized customer service and support at scale. Its service
offerings also comprise flexible platform that enables companies of various
sizes, locations, and industries to build business apps to bring them closer to
their customers with drag-and-drop tools; online learning platform that allows
anyone to learn in-demand Salesforce skills; and Slack, a system of engagement.
In addition, the company's service offerings include Marketing offering that
enables companies to plan, personalize, and optimize one-to-one customer
marketing journeys; and Commerce offering, which empowers brands to unify the
customer experience across mobile, web, social, and store commerce points.
service offerings comprise Tableau, an end-to-end analytics solution serving
various enterprise use cases; and MuleSoft, an integration offering that allows
its customers to unlock data across their enterprise.
provides its service offering for customers in financial services, healthcare
and life sciences, manufacturing, and other industries. It also offers
professional services; and in-person and online courses to certify its
customers and partners on architecting, administering, deploying, and
developing its service offerings. The company provides its services through
direct sales; and consulting firms, systems integrators, and other partners.
Inc. was incorporated in 1999 and is headquartered in San Francisco,
Further Catalysts for the CRM Weekly Options Trade…..
quarterly revenues of $8.25 billion climbed 11% year over year, surpassing the Consensus
Estimate of $8.17 billion. The top line also improved 13% in constant currency.
Despite this, the company's revenue growth for the quarter came in at its
slowest pace since 2010. This slowdown was partly due to a shortfall in
under-contract sales expected in the next 12 months (that is, cRPO, or current
revenue performance obligation).
the upcoming quarter Salesforce expects sales of $8.51B to $8.53B, higher than
the $8.49B estimates.
has been benefiting from the robust demand environment as customers are
undergoing a major digital transformation. Thus, the rapid adoption of its
cloud-based solutions resulted in the better-than-anticipated performance in
the fiscal first quarter.
The company's stock led the NYSE gainers with a relatively large price
hike in the past couple of weeks, but Salesforce is still trading at a fairly
expected to more than double over the next couple of years, the future seems
bright for Salesforce. It looks like higher cash flow is on the cards for the
stock, which should feed into a higher share valuation.
CRM is currently undervalued, and with a positive outlook on the horizon,
it seems like growth has not yet been fully factored into the share price.
Inc CEO Marc Benioff has shuffled the top management, a move that follows after
the software company reported its slowest quarterly revenue growth since 2010.
Milano has been appointed as the chief revenue officer, adding that Ariel
Kelman will take over as Salesforce's chief marketing officer.
previous tenure of nearly a decade at Salesforce, Milano will make a return
from his recent position at software company Celonis. Kelman has previously
served as CMO at Amazon Web Services and Oracle.
Collins, who will step into the role of chief of staff for Benioff, had worked
as CMO at Okta and Cisco's AppDynamics.
President and Chief Operating Officer Brian Millham would be assuming new
duties such as marketing, employee success and business technology.
appointments at Salesforce come amid mounting pressure from activist investors,
including ValueAct, Inclusive Capital, and Starboard Value, who have been
advocating for operational improvements, cost-control initiatives, and enhanced
efficiencies over the past several months.
year, Salesforce announced plans to close some offices and cut jobs by 10%
after the pandemic-induced hiring left the company with a bloated workforce.
in early 2023 disbanded a panel that explores mergers and acquisitions,
implying it will make no more big acquisitions.
rising corporate spending on digital transformation projects remains a plus for
sells software under a subscription model. Its software helps businesses
organize and handle sales operations and customer relationships. The company
has expanded into marketing, e-commerce and data analytics.
coronavirus pandemic, demand for next-generation collaboration and productivity
tools increased. In addition, many companies aim to automate operations and
track key business metrics in order to support employees working from home.
transformation projects turn paperwork into electronic records and automate
business workflows. More companies are investing in business analytics and
artificial intelligence tools that scrub customer data.
CRM stock could get a lift from U.S. federal information technology spending.
The company provides "no-code" programming tools for the public
customers of software-as-a-service, or SaaS, companies like Salesforce purchase
renewable subscriptions, rather than one-time software licenses. Customers
receive automatic software updates via the web.
company spends about 14% of revenue on research and development, relatively
high for a software company. Increased hiring and wage inflation for software
engineers also have been a headwind to margin growth.
One technology that Salesforce hopes will drive more revenue is
artificial intelligence. The enterprise software maker introduced its
"Einstein" AI software cloud platform in September 2016. The first
Einstein AI software tools helped salespeople predict which deals are most
likely to close based on a company's historical lead and account data.
In addition, Salesforce has integrated AI tools into other enterprise
software offerings over the past three years, targeting industries such as
financial services in digital transformation. Einstein AI primarily works via
Salesforce in 2019 agreed to buy data analytics firm Tableau for $15.7
billion in an all-stock deal. Tableau provides data visualization software. In
addition, it enables customers to build databases, graphs and maps using time
series analytics, a technique that analyzes a series of data points ordered in
Also, Salesforce expects synergy between its Einstein artificial
intelligence tools and Tableau's business intelligence software. In 2021,
Salesforce announced that it would rebrand Einstein Analytics as Tableau CRM.
Goldman Sachs reiterated its Buy rating on CRM shares, citing the
results as "strong in light of the challenging macro backdrop."
"The magnitude of revenue outperformance was below historical
trends and guidance for Q2 CRPO (current remaining performance obligations), to
grow +10% year-over-year was 1% below
expectations," Goldman Sachs analyst Kash Rangan said in a note to
Further, CRPO bookings are an aggregate of deferred revenue and order
Similarly, Bank of America reaffirmed a Top Pick status on CRM, noting
it was "impressed" by the 1% guidance beat for cRPO growth
"given the tough macro and disruption from restructuring actions.”
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.
The upbeat view is that acquisitions
have enabled Salesforce to expand from its roots in customer relationship
management software into marketing, e-commerce and other markets.
Salesforce is one of many big-cap
tech stocks to watch. Started in 1999, Salesforce went public in 2004. Benioff,
who is also Salesforce's founder, worked at Oracle for 13 years before he left
to start the software company.
CRM stock in 2020 was added to the
Dow Jones Industrial Average. Further, it replaced Exxon Mobil (XOM) in the
Shares of CRM stock
traded up $0.90 during mid-day trading on Tuesday, hitting $210.76. The
company’s stock had a trading volume of 1,885,878 shares, compared to its
average volume of 7,771,836. The stock has a market cap of $205.28 billion, a
price-to-earnings ratio of 548.57, a PEG ratio of 2.24 and a beta of 1.24. The
company 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 52-week low of $126.34 and a 52-week high
of $225.00. The business has a 50-day moving average price of $201.02 and a 200
day moving average price of $172.28.
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