Nov 29, 2023

Salesforce releases its latest earnings after the market close on Wednesday, with the shares in a tight range.


CRM – Daily Chart

CRM currently stands at $224.57, with a tight range between $222 and $227. However, a more significant move could occur if an earnings catalyst breaks those levels.  

Salesforce will release its third-quarter fiscal 2024 earnings, and the cloud-based software maker’s performance is expected to have benefited from recent demand at other cloud providers in the tech industry. The rapid adoption of software-as-a-service platforms with hybrid working and digitalisation is expected to increase demand for Salesforce’s solutions.  

Further growth is expected for generative artificial intelligence solutions, which can add to the company’s top line. That could be the key driver on top of current cloud growth trends. The company launched its Einstein Analytics platform, and analysts are optimistic about the upcoming quarterly results. 

However, small and medium businesses have also decreased their software spending due to ongoing macroeconomic headwinds and geopolitical issues. On the second-quarter conference call, Salesforce said its customers scrutinise every deal. 

Subscription and Support segment estimates for the third quarter are approximately $8 billion. Salesforce also hinted that professional service business demand for multi-year transformation deals has been lower and that projects have sometimes been delayed. Estimates for that segment are approximately $701.8 million. There is also the issue of stiff competition from other cloud providers, such as Oracle and Microsoft. 

The earnings release should break the stock from its small trading range and lead to a more significant trend.

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