Salesforce.com (CRM) stock: what's the sentiment?

1:36 pm ET, 29 Aug 2018

Salesforce.com Inc (CRM) shares are trading at 154.45, up 1%. The company announces earnings on August 29 after the market close.  What's driving CRM stock price? What's CRM stock price forecast?

Salesforce has been on an acquisition spree, and the M&A tempo is still going steady.  The company closed its $6.5 billion acquisition of MuleSoft, a major applications integration player.   In addition, Salesforce has been expanding its international operations and creating partnership the likes of Amazon and Alphabet.  

MuleSoft, which diluted CRM's earnings, contributed heavily in Salesforce’s raised forecast in its last earnings report. $315 million out of $415 million in Salesforce's raised outlook for the year is coming from MuleSoft.

On today's earnings call, the company is likely to focus on its annual Dreamforce convention in late September. The conference will take over the city of San Francisco from September 24 until September 28. 

What is the sentiment towards the CRM stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Salesforce.com Inc (CRM) returned +4.32%.

Salesforce.com Inc (CRM) average analyst price target ($147.48) is -3.16% below its current price ($152.30).

For the latest price and information on Salesforce.com Inc, please visit Finstead and search for "CRM price" or "CRM news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Box (BOX) stock: not-so-profitable growth

5:50 am ET, 28 Aug 2018

Box, Inc. (BOX) shares are trading at $26.05, prior to the earnings today. What should investors be aware of--and what will the market be watching out for in the upcoming earnings?

Box continues to ride on increasing adoption of its cloud content management platform by its existing customers as well as new customers. The company is witnessing a solid growth in its paid customer base which is aiding its top-line growth.

The company’s efforts toward enriching its cloud management and AI platforms will drive growth in fiscal 2019.  Its platform today integrates with some of the biggest enterprise technology providers such as Microsoft, Apple, IBM, Google, and Salesforce. The company enables in-house enterprise developers and independent software developers to create applications with ease. As a result, the company has a strong user base that includes more than 60 million registered users. 

What worries investors about Box is its profitability.  Box has been incurring losses since it went public in 2005; the company had an accumulated a deficit of $1.04 billion. Box’s current focus is on scaling its business through making significant investments in its cloud infrastructure, development, professional services, sales, marketing and so on. The company said that it will continue making such investments and as result does not expect profit in the foreseeable future.

What is the sentiment towards the Box stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Box, Inc. (BOX) forward P/E ratio is 428.5, and it’s high compared to its industry peers’ P/E ratios.

Box, Inc. (BOX) short share of float is 7.7%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Box, Inc. (BOX) average analyst price target ($26.00) is -0.46% below its current price ($26.12).

For the latest price and information on Box, Inc., please visit Finstead and search for "BOX price" or "BOX news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Splunk (SPLK) price forecast: what can you expect now?

1:02 pm ET, 25 May 2018

Splunk is down 3% post-earnings release.  What can you expect from the SPLK stock price now?

Splunk reported first-quarter results that were in line with analysts' expectations as the firm continues to execute well on its transition to cloud-based services and subscription-oriented contracts. 

The management team offered a solid outlook for the balance of the year. Splunk is likely to expand its presence within the enterprise sector, but there are other companies in the enterprise space with better growth prospects. Some names that come to mind are Microsoft, Guidewire, Salesforce, Blackbaud, and ServiceNow.

First-quarter revenue rose 37% versus the prior-year period to $312 million. Management continues to see strong adoption of Splunk’s enterprise platform beyond security, as use cases for IT Ops, DevOps, and Cloud Management remain popular applications for Splunk’s solutions. 

Large deals continue to flow as a result of Splunk’s versatile platform, with the firm closing 43 seven-figure deals in the quarter, up from 35 in the year-ago period. 

The firm added 460 customers in the quarter.  Annual contract value (ACV) rose 21% versus the prior-year period to just over $80,000, suggesting customers are not only spending more with Splunk earlier in the cycle but growing their consumption as the relationship matures. 

Management lifted its full-year revenue outlook to $1.64 billion, up from $1.62 billion. The firm is well positioned to exceed its fiscal 2020 revenue goal of $2 billion.

Based on Finstead research, SPLK price target upside is -17.78% (visit Finstead and type "SPLK upside" to get the latest scoop).  

Over the last year, SPLK returned +71.73%. This return is higher than Application Software sector (29.63%), Technology industry (18.70%), S&P 500 (12.95%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Salesforce.com (CRM): Is Acquiring MuleSoft (MULE) A Dumb Move?

2:37 pm ET, 21 Mar 2018

The acquisition of MuleSoft (MULE) by Salesforce (CRM) for around $6.5 billion is the largest in Salesforce’s  history. 

This may be expensive, but it’s strategic.  It enables CRM to compete with its chief rivals such as Microsoft Corporation (MSFT) and Oracle Corporation (ORCL).

How so? With its integration capabilities, Mule Soft can help Salesforce migrate competitor workloads to the Salesforce platform.  A particular target for this effort is Oracle.  While Oracle might have neglected its Marketing Cloud acquisitions, Salesforce is ready to take that business away from it.  

Mule Soft has manifested rapid growth through a 58% year-over-year surge in its revenue in 2017. The integration software maker has renowned brands as its customers (e.g., Coca-Cola, Mc Donald’s and Barclays).

Salesforce’s revenue will increase immediately after the acquisition, but not materially. But this aggressive step will help CRM achieve the $20B target by 2022.

How should you react as a Salesforce investor?  The acquisition should not fundamentally change your thinking.  Although expensive, it also has a lucrative upside. 

According to Finstead research, CRM’s average price target is comparable to its current price (visit Finstead.com and type "CRM price target").

Salesforce's long-term growth potential is evident from its constant effort in business expansion through strategic acquisitions and investments.

Over the last year, CRM returned +50.93%. This return is higher than Application Software sector (31.82%), Technology industry (22.52%), and S&P 500 (14.47%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Salesforce.com: Sales Cloud Defying Gravity

6:50 pm ET, 22 Nov 2017


Salesforce delivered third-quarter results that beat market expectations, as the company continues to deliver strong growth across all product verticals and geographies.  Many of the topics discussed at Salesforce’s annual Dreamforce event earlier this month showed up in these results, including outsize international growth and consistent operating margin expansion. 

The biggest delight is that European revenue rose more than 45% and adjusted operating margin expanded more than 350 basis points.  Third-quarter revenue rose 25% versus the prior-year period to $2.7 billion.   Salesforce continues to be one of the most attractive profitable growth stories in software.  

Salesforce’s oldest product, Sales Cloud, continues to enjoy reaccelerated growth behind innovations such as Einstein-driven artificially intelligent features and new products such as Financial Services and Healthcare Cloud.  Sales Cloud revenue rose 17% versus the prior-year period.  Sales Cloud is a crucial driver of Salesforce’s growth engine, as it often serves as the opening salvo when Salesforce lands net new customers, and frequently yields strong sell-through of Salesforce’s other premier cloud offerings. The longer Sales Cloud can fuel the new customer pipeline, the more durable Salesforce’s profitable growth trajectory will be.  

COO Keith Block echoed this sentiment, intimating that more and more customers are evaluating multiple clouds at once, driving switching costs.

Over the last month, CRM has returned 7.81%. This return is higher than Technology Sector (0.45%), Application Software Industry (2.92%), and S&P 500 (0.85%) returns.


Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Salesforce.com Inc (CRM) Stock Guide

Updated at: 5:03 am ET, 12 Aug 2020

Before we start: if you're looking for CRM stock price, you can quickly find it out by visiting Finny and typing "CRM quote". If you're looking for a quick scoop on CRM stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "CRM". You'll get all this info in one place. Or you can just type "CRM news" to get the latest stock news.

Looking to buy or sell Salesforce.com Inc (CRM)? Interested in getting the full scoop on CRM, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this CRM stock guide, we'll address key questions about CRM, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are CRM earnings?
2. When is CRM earnings date?
3. What is CRM stock forecast (i.e., prediction)?
4. CRM buy or sell? What is CRM Finny Score?
5. What are the reasons to buy CRM? Why should I buy CRM stock?
6. What are the reasons to sell CRM? Why should I sell CRM stock?
7. What are CRM key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are CRM earnings?

CRM trailing 12-month earnings per share (EPS) is -$0.19.

2. When is CRM earnings date?

CRM earnings date is August 25, 2020.

Analyst Predictions

3. What is CRM stock forecast (i.e., prediction)?

Based on CRM analyst price targets, CRM stock forecast is $202.05 (for a year from now). That means the average analyst price target for CRM stock is $202.05. The prediction is based on 45 analyst estimates.

The low price target for CRM is $120.00, while the high price target is $242.00.

CRM analyst rating is Buy.

Analysis

4. CRM buy or sell? What is CRM Finny Score?

#{finnyScore:63}Our quantitative analysis shows 5 reasons to buy and 3 reasons to sell CRM, resulting in Finny Score of 63.

5. What are the reasons to buy CRM? Why should I buy CRM stock?

Here are the reasons to buy CRM stock:

  • Software as a service is among the fastest methods for enterprises to cut costs in the IT infrastructure.
  • Salesforce.com is far and away the largest pure-play SaaS vendor in the world, producing subscriptions revenue several times larger than peers Workday and ServiceNow.
  • The firm has successfully expanded into a number of fast-growing verticals to prop up long-term revenue growth, including marketing, analytics, application development, and the Internet of Things.
  • CRM quarterly revenue growth was 30.20%, higher than the industry and sector average revenue growth (1.11% and 0.89%, respectively). See CRM revenue growth chart.
  • CRM profitability is improving. The YoY profit margin change was 7.14 percentage points. See CRM profitability chart.
  • CRM Price/Book ratio is 4.99, which is low compared to its industry peers’ P/B ratios. See CRM forward Price/Book ratio chart.
  • CRM average analyst rating is Buy. See CRM analyst rating chart.
  • CRM cash to debt ratio is 1.58, higher than the average industry (0.16) and sector (0.17) cash to debt ratio. See CRM cash to debt chart.

6. What are the reasons to sell CRM? Why should I sell CRM stock?

Let's look at the reasons to sell CRM stock (i.e., the bear case):

  • There is still some trepidation for some industry verticals in moving applications, data, and sensitive information to the cloud. Salesforce.com does not offer hybrid or on-premises solutions to mitigate these concerns.
  • Microsoft, Oracle, SAP, and others will continue to invest heavily in cloud-based services, which could stunt Salesforce.com’s growth rate.
  • Salesforce.com leverages several third-party data centers, limiting the amount of oversight the firm can have on its infrastructure and representing a potential security vulnerability.
  • CRM forward P/E ratio is 53.78, which is high compared to its industry peers’ P/E ratios. See CRM forward P/E ratio chart.
  • CRM short interest (days to cover the shorts) ratio is 2.29. The stock garners more short interest than the average industry, sector or S&P 500 stock. See CRM short interest ratio chart.
  • CRM Enterprise Value/EBITDA multiple is 86.57, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See CRM Enterprise Value/EBITDA chart.

Key Stats

7. What are CRM key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for CRM:

Metrics CRM
Price $193.39
Average Price Target / Upside $202.05 / 4.48%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 35,000
Market Cap $174.31B
Forward P/E Ratio 54.19
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth N/A
Profit Margin N/A

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Use Finny to ask any finance or investment question. Big or small. Personal or general.
Follow Us