Core Viewpoint - Salesforce Inc is set to report its fourth-quarter earnings, with Wall Street expecting an EPS of $2.61 and revenues of $10.04 billion, while the stock has shown a 2.76% increase over the past year but a 6.64% decline year-to-date [1] Stock Performance - Salesforce stock is currently priced at $308.35, indicating it is in bearish territory as it trades below its five-day, 20-day, and 50-day exponential moving averages (EMA), suggesting a strong downward trend [2] - The stock's eight-day simple moving average (SMA) is $316.35, the 20-day SMA is $328.28, and the 50-day SMA is $332.95, all reinforcing the bearish setup and short-term weakness [2] Technical Indicators - The stock remains above its 200-day SMA of $289.55, which provides a longer-term bullish signal [3] - Momentum indicators show a negative trend, with the Moving Average Convergence Divergence (MACD) at -6.90 indicating negative momentum, and the Relative Strength Index (RSI) at 34.92 suggesting the stock is nearing oversold conditions [3] Analyst Ratings - The consensus analyst rating for Salesforce stock is currently a Buy, with a price target of $378.03, indicating a potential upside of 26.57% according to recent ratings from Citigroup, Citizens Capital, and BMO Capital [5] - At the time of publication, Salesforce stock was trading at $308.12 [5]

Group 1 - Google Cloud secured a $2.5 billion, seven-year deal with Salesforce CRM, allowing Salesforce customers to run key software like Agentforce AI and Data Cloud on Google Cloud [2] - The partnership aims to counter Microsoft's dominance in enterprise AI and cloud, with clients like Wayfair and Accenture set to move Salesforce apps to Google Cloud [2] - Salesforce will integrate Google's Gemini AI into its services, highlighting its strategic focus on enhancing AI capabilities [3] Group 2 - Salesforce is included as a top 10 pick in the Outlook 2025 due to its involvement in funding major events like the Olympics and the NFL on Netflix [3] - Recent market conditions indicate a potential reversal pattern for Salesforce, with a new 60+ day low price observed [7] - The stock's recent low of 303.61 is close to a previous gap low of 303.07, suggesting 293 as a logical risk point [7]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive adopts technology enthusiastically, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Company Overview - Salesforce, Inc. (NYSE: CRM) was previously viewed neutrally due to a lack of strong products to compete with the disruptive nature of Generative AI [1] - The perspective on Salesforce changed in October, indicating a potential shift in its market position or product offerings [1] Analyst Background - The analyst has 10 years of experience in investment banking and a background in IT, specifically as the Director of Keylogin InfoTech, providing a unique perspective on technology investments [1] - The analyst emphasizes a moderate approach to investing, focusing on capital preservation and informed decision-making based on personal experience and analytics [1] Investment Themes - The analyst covers various themes including automated supply chains, Generative AI, telecommunications capital expenditures, the deflationary nature of software, and semiconductors [1] - There is a noted interest in "techbio" sectors, indicating a focus on the intersection of technology and biotechnology [1]

Core Viewpoint - Salesforce, Inc. is expected to report strong fourth-quarter fiscal 2025 earnings driven by digital transformation, cloud adoption, and AI integration despite some macroeconomic challenges [1][2]. Group 1: Revenue Drivers - The ongoing digital transformation and the rise of AI-powered automation are significantly boosting demand for Salesforce's products, particularly its AI-driven solutions like Einstein Analytics [3][5]. - Salesforce's diversified cloud portfolio across various applications such as sales, marketing, and customer service has helped stabilize revenue even amid economic uncertainties [4]. - The Subscription and Support segment is projected to generate approximately $9.5 billion in the fourth quarter, reflecting an 8.6% year-over-year growth, indicating strong customer retention and demand resilience [11]. Group 2: Growth Strategies - Salesforce's commitment to innovation in AI, automation, and data analytics positions it well to capitalize on the rapidly growing global AI-driven cloud market [6]. - The company's international expansion strategy has allowed it to tap into increasing demand for digital transformation solutions in global markets, particularly in Europe and Asia-Pacific [7][8]. Group 3: Challenges - Despite strong long-term growth potential, Salesforce faces challenges from macroeconomic pressures, particularly as small and mid-sized enterprises tighten IT budgets [9]. - The company has noted elongated deal cycles, which may lead to smaller deal sizes and delayed revenue recognition in the fourth quarter [10]. Group 4: Profitability Focus - Salesforce's focus on cost efficiency through strategic workforce reductions and operational efficiencies has contributed to margin expansion and profitability growth [12][13].

Core Viewpoint - Artificial Intelligence (AI) is positioned as a transformative technology with significant long-term investment potential, contingent on making informed investment choices Group 1: Nvidia - Nvidia is identified as a leading player in AI infrastructure, benefiting from increased spending on graphic processing units (GPUs) essential for AI model training and inference [2][4] - Major tech companies, including Microsoft, Amazon, Alphabet, and Meta Platforms, are significantly investing in AI infrastructure, with Microsoft planning to spend approximately $80 billion, Amazon $100 billion, Alphabet $75 billion, and Meta up to $65 billion by 2025 [3] - Nvidia holds a dominant 90% market share in the mass-merchant GPU market, supported by its CUDA software platform, which is superior to competitors [4] - The stock is considered attractively valued, trading at a forward P/E ratio of 25 times 2025 estimates and a PEG of 0.5, indicating potential undervaluation [5] Group 2: Alphabet - Alphabet's Google Cloud is a key player in the AI space, with Q4 revenue increasing by 30% to $12 billion and operating income surging 142% to $2.1 billion [7] - The company is expanding capital expenditures to address capacity constraints and has developed custom AI chips (TPUs) to enhance cost efficiency and performance [8] - Alphabet's Gemini 2.0 AI model is now publicly available, enhancing its search capabilities and potentially driving future ad revenue growth [9] - The stock is trading at a forward P/E of 18 times, indicating it is relatively inexpensive [10] Group 3: Salesforce - Salesforce is focusing on agentic AI, which allows AI agents to perform tasks autonomously, enhancing the capabilities of generative AI [11] - The company launched its Agentforce solution, which offers customizable AI agents for various tasks, and has seen strong demand with over 1,000 deals in place shortly after launch [12][13] - The consumption-based pricing model for Agentforce is set at $2 per conversation, presenting a scalable revenue opportunity [13] - Salesforce's stock is trading at a forward P/E of under 26 times with a PEG below 0.6, reflecting an attractive valuation given its growth potential [14]

Core Insights - Salesforce (CRM) is anticipated to report its fourth-quarter results, with analysts optimistic about AI-driven growth opportunities [1][5] - A significant majority of analysts have issued "buy" ratings, with a consensus price target suggesting nearly 30% upside from the current price [1] - The company is projected to achieve revenue of $10.05 billion, reflecting an 8% year-over-year increase, and adjusted earnings per share of $2.62, up from $2.29 a year ago [2] Analyst Ratings and Expectations - Of the 25 analysts covering Salesforce, 20 have a "buy" or equivalent rating, while 5 have a "hold" rating [1] - Deutsche Bank analysts maintain a "buy" rating with a $400 price target, citing early momentum in the Agentforce AI suite [2] - Oppenheimer analysts view the departure of COO Brian Millham as a negative surprise but expect new CFO Robin Washington to enhance operational efficiency [4] Company Developments - Salesforce announced that Robin Washington, former CFO of Gilead Sciences, will join as the new chief operating and financial officer on March 21 [3] - The company has faced a challenging start to 2025, with shares down approximately 7% year-to-date after a strong performance in 2024 [5]

Core Viewpoint - Salesforce is expected to report strong fourth-quarter fiscal 2025 results, driven by digital transformation initiatives and growing demand for AI-enabled cloud solutions [7][8][20] Revenue and Earnings Projections - For the fourth quarter, Salesforce projects total revenues between $9.9 billion and $10.1 billion, with a consensus estimate of $10.04 billion, indicating an 8.1% increase year-over-year [2] - Non-GAAP earnings per share are anticipated to be in the range of $2.57 to $2.62, with a consensus estimate of $2.60, reflecting a 13.5% increase from the previous year [3] Earnings Performance and Trends - Salesforce has beaten the Zacks Consensus Estimate three times in the last four quarters, with an average surprise of 3% [4] - The company currently holds a Zacks Rank 2 but has an Earnings ESP of -1.63%, indicating uncertainty regarding an earnings beat this quarter [5][6] Strategic Initiatives and Market Position - Salesforce's focus on digital transformation and cloud solutions is expected to enhance revenue growth, supported by its strategic acquisitions and expansion into key markets [7][9][10] - The company has made significant acquisitions, including Spiff, Own, and Zoomin, which have diversified its revenue base and enhanced its capabilities [10][18] Product and Service Performance - Revenue estimates for key cloud services include $2.15 billion for Sales, $2.31 billion for Service, $1.9 billion for Platform & Other, $1.36 billion for Marketing & Commerce, and $1.77 billion for Data [11] - Subscription and Support segment revenues are expected to be approximately $9.5 billion, with Professional Services projected at $513 million [11] Profitability and Cost Management - Ongoing cost restructuring initiatives are likely to improve profitability, with a reported non-GAAP operating margin of 33.1% in the third quarter, up 190 basis points [12] Stock Performance and Valuation - Over the past year, Salesforce shares have increased by 8.5%, outperforming the Zacks Computer – Software industry growth of 6.8% [13] - The stock is currently trading at a forward 12-month P/S ratio of 7.33X, which is lower than the industry average of 8.61X, indicating a potential investment opportunity [15] Investment Thesis - Salesforce maintains its leadership in the customer relationship management industry, bolstered by strategic acquisitions and a strong focus on AI initiatives [17][19] - The company is well-positioned to benefit from rising global IT spending, projected to reach $5.61 trillion in 2025, with enterprise software spending expected to grow even faster [20]

In its upcoming report, Salesforce.com (CRM) is predicted by Wall Street analysts to post quarterly earnings of $2.60 per share, reflecting an increase of 13.5% compared to the same period last year. Revenues are forecasted to be $10.04 billion, representing a year-over-year increase of 8.1%.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timefr ...

Company Performance - Salesforce.com (CRM) closed at $318.43, reflecting a -1.88% change from the previous session, underperforming the S&P 500 which lost 0.43% [1] - The stock has decreased by 2.43% over the past month, while the Computer and Technology sector gained 0.32% and the S&P 500 increased by 2.6% [1] Upcoming Earnings - Salesforce.com is set to release its earnings on February 26, 2025, with analysts expecting earnings of $2.60 per share, indicating a year-over-year growth of 13.54% [2] - The consensus estimate for revenue is projected at $10.04 billion, reflecting an 8.06% increase from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Salesforce.com indicate a positive outlook for the company's business trends [3] - Positive estimate revisions are seen as a sign of optimism regarding the company's future performance [3] Zacks Rank and Valuation - Salesforce.com currently holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 29.1, which is lower than the industry average of 29.52 [5] - The company has a PEG ratio of 1.98, compared to the average PEG ratio of 2.2 for Computer Software stocks [6] Industry Context - The Computer - Software industry ranks 135 in the Zacks Industry Rank, placing it in the bottom 47% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]