Salesforce stock: buy or sell?
Updated on:
February 26th, 2020
3
Salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management. The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence, and collaborate around sales on desktop and mobile devices, as well as solutions for partner relationship management.
Should I buy Salesforce stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, Salesforce.com stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Salesforce.com stock a buy?
Financial institutions and banks publish stock ratings everyday.
Unfortunately, we couldn't detect any rating for CRM stock for the last month.Salesforce stock analysis
Daily outlook
Salesforce.com declined -1.35% today to $178.83 after marking all time highs on Thursday.
Salesforce.com declined -1.35% to $178.83 after reaching all time highs on Thursday. Since last January when SMA100d and SMA200d crossed up, CRM price gained $5.38 per share (3.10%). Since last October when CRM stock price broke up the SMA200d line, it gained $28.34 (18.83%). On Thursday, CRM hit a new all time high, pushing higher than on Feb/19 tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
Salesforce.com plunged a chilling -5.63% this week. Early January CRM boosted an astounding 7.79% in just one week.
Benioff's company stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, CRM might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record the cloud CRM company marked last week. Since SMA20d and SMA40w crossed up late December 2019, CRM price climbed $13.85 per share (8.39%). Since late October 2019 when CRM stock price broke up the SMA40w line, it gained $28.34 (18.83%).
Salesforce stock price history
Salesforce IPO was on June 23rd, 2004 at $3.75 per share1. Since then, CRM stock grew a 4,668.80%, with an average of 311.30% per year. If you had invested $1,000 in Salesforce stock in 2004, it would worth $46,688.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Salesforce stock historical price chart
CRM stock reached all-time highs on Thursday with a price of $195.72.
Salesforce stock price target
Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not found any price forecast for Benioff's company stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
Salesforce.com presented dazzling results for 2019-Q1 on March. Salesforce.com climbed Earnings per Share (EPS) by 60.90%, beating experts estimates of $0.23. Salesforce.com posted $0.37.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | -0.01 | n/a |
| 2017-Q3 | - | n/a | 0.02 | n/a |
| 2017-Q4 | 2017-11-21 | 0.37 | 0.39 | 5.4% |
| 2018-Q1 | 2018-02-28 | 0.11 | 0.15 | 36.4% |
| 2018-Q2 | 2018-05-29 | 0.18 | 0.52 | 188.9% |
| 2018-Q3 | 2018-08-29 | 0.12 | 0.35 | 191.7% |
| 2018-Q4 | 2018-11-27 | 0.15 | 0.26 | 73.3% |
| 2019-Q1 | 2019-03-04 | 0.23 | 0.37 | 60.9% |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2019, Salesforce.com annual turnover rocketed a dazzling 26.74% to $13,282.00 M dollars from $10,480.00 marked in 2018. When comparing 2019 vs 2018, however, profit margin (that is, the net income divided by revenues) soared a 7.14% to 8.36%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2014 | $4,070 M | - | $-232.18 M-5.7% | - |
| 2014 | $5,370 M | 31.94% | $-262.69 M-4.9% | 13.14% |
| 2015 | $5,374 M | 0.07% | $-262.69 M-4.9% | 0.00% |
| 2015 | $6,670 M | 24.13% | $-47.43 M-0.7% | -81.94% |
| 2016 | $6,667 M | -0.04% | $-47.43 M-0.7% | -0.01% |
| 2016 | $8,390 M | 25.84% | $180 M2.1% | -478.76% |
| 2017 | $8,392 M | 0.02% | $180 M2.1% | 0.00% |
| 2017 | $10,480 M | 24.88% | $127 M1.2% | -29.03% |
| 2018 | $10,480 M | 0.00% | $127 M1.2% | 0.00% |
| 2019 | $13,282 M | 26.74% | $1,110 M8.4% | 770.74% |
Quarterly financial results
Salesforce.com reported $3,603.00 M in revenues for 2019-Q1, a 6.22% up compared to previous quarter. Reported quarter income marked $362.00 M with a profit margin of 10.05%. Profit margin jumped a 6.95% compared to previous quarter when profit margin was 3.10%. When comparing revenues to same quarter last year, Salesforce.com sales marked an exceptional increase and boosted a 28.45%. Looking back to recent quarterly results, Salesforce.com posted 7 negative quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $2,390 M | - | $-9 M-0.4% | - |
| 2017-Q3 | $2,560 M | 7.11% | $18 M0.7% | -292.62% |
| 2017-Q4 | $2,680 M | 4.68% | $51 M1.9% | 189.71% |
| 2018-Q1 | $2,805 M | 4.67% | $-27 M-0.9% | -151.61% |
| 2018-Q2 | $3,006 M | 7.17% | $344 M11.4% | -1,397.04% |
| 2018-Q3 | $3,281 M | 9.15% | $299 M9.1% | -13.08% |
| 2018-Q4 | $3,392 M | 3.38% | $105 M3.1% | -64.88% |
| 2019-Q1 | $3,603 M | 6.22% | $362 M10.0% | 244.76% |
Salesforce.com ownership
When you are planning to invest in a stock, it's always worth to review its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Salesforce.com, 3.87% of all outstanding shares are owned by its staff.
Bearish positions for CRM stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related stocks:
| CRM | |
|---|---|
| Market cap | $158.6 B |
| Total shares | 887.0 M |
| Float shares | 852.3 M |
| - Institutional holdings (%) | 83.2% |
| - Insider holdings (%) | 3.9% |
| Shares in short selling | 0.0% |
Salesforce summary
| Wednesday, February 26th, 2020 | |
|---|---|
| Open | $176.54 |
| Close | $178.83 |
| Day range | $174.25 - $182.63 |
| Previous close | $181.27 |
| Session gain | -1.35% |
| Average true range | $5.01 |
| 50d mov avg | $178.51 |
| 100d mov avg | $167.11 |
| 200d mov avg | $159.77 |
| Daily pattern | |
| Weekly pattern | lt06a |
Salesforce.com performance
To measure stock performance is always good to compare with competitors or related stocks. We compared Salesforce.com against in the following table:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| CRMSalesforce.com | 9.79% | 14.58% | 8.69% |
Salesforce.com competitors
Unfortunately, we could not find any public company that could be defined as Salesforce.com competitor. This doesn't mean Salesforce.com does not have any competitor in the market, it's just we could not detected it.Latest Salesforce stock news
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