Should You Buy or Sell CRM Stock Ahead of Its Earnings?

Core Insights - Salesforce (NYSE:CRM) is expected to announce earnings on May 28, 2025, with analysts predicting earnings of $2.55 per share and revenues of$9.75 billion, an increase from $2.44 per share and$9.13 billion in the same quarter last year [3] - The company's market capitalization stands at $262 billion, with a total revenue of$38 billion over the last twelve months, indicating strong operational profitability with operating profits of $7.7 billion and net income of$6.2 billion [3] Historical Performance - Over the past five years, Salesforce's stock has shown a 50% chance of a positive one-day return post-earnings, with a median increase of 7.4%, while the other 50% resulted in a median decrease of 5.5% [5] - The historical data indicates that the correlation between one-day (1D) and five-day (5D) returns can guide traders in positioning themselves effectively after earnings announcements [4][5] Trading Strategies - Event-driven traders can utilize historical probabilities to make informed decisions, either by taking positions before earnings announcements or by adjusting their positions based on immediate and medium-term returns after earnings are disclosed [2] - A less risky approach involves understanding the correlation between short-term and medium-term returns, allowing traders to execute relevant trades based on the highest correlation observed [4] Peer Performance - The performance of peers can influence Salesforce's stock reaction post-earnings, with historical data showing that peer stock returns can affect pricing even before earnings are announced [6]