Trading Salesforce Stock 25% Surge Post Earnings Report

The recent sell-off in the stock market has led to many billionaire tech companies cutting back on their pandemic-related profits.

While the threat of higher interest rates continues to hurt emerging markets such as technology stocks, there are still some companies reporting strong fundamentals.

Cloud-based software company Salesforce recently released an earnings report that surprised the market, sending the stock up nearly 8% on the news but still down about 39% from its all-time high.

Learn more about Salesforce Stock (CRM) and how to trade it below.

Every trade involves high risk and you can lose more than your risk in the trade. Never invest more than you can afford to lose because some trades will lose and some trades will win. Start small to understand your own risk tolerance, or practice on a demo account. Build your knowledge first before investing.

Why trade? Sales force stock?

Salesforce is an American cloud-based software company that offers one of the most widely used customer relationship management platforms in the world. Walmart is one of Salesforce's top customers. The company operates worldwide, with most of its customers based in the United States and the United Kingdom.

In late May, Salesforce reported first-quarter results that beat analyst expectations while also improving its full-year earnings guidance. The company posted revenue of $7.41 billion versus $7.38 billion expected and earnings of 98 cents per share versus 94 cents per share expected.

With revenues up 24% year-on-year and the successful $2.7 billion acquisition of Slack, many analysts are optimistic about the longer-term outlook for Salesforce's share price, as discussed below.

Interestingly, while many other companies bemoan the state of the global economy, Marc Benioff, co-founder and co-CEO of Salesforce, says, “We just don't see a significant impact on the wider economic world you are all in.”

However, this does not mean that the company's performance will continue amid the global economic slowdown. Some of its customers may start to slow down or reduce their spending. This is one of the reasons why Salesforce slows down their hiring process.

This also resulted in Salesforce lowering its 2023 revenue guidance but raising its revenue expectations.

Foreclosure stock forecast – What dotdia analysts have to say?

There are currently 29 buy, 4 hold, and 0 sell recommendations for the stock, according to analysts surveyed by TipRanks over the past 3 months for Salesforce stock forecasts. The highest price level for the Salesforce stock forecast is $332.00 and the lowest price target is $175.00.

The median target price for the Salesforce stock forecast is $241.03, up more than 31% from current levels at the time of writing.

Source: Rating Tip, June 7, 2022

Exemplary trading ideas for Foreclosure Stock price

An example of a trading idea for a Salesforce stock forecast might look like this:

Buy the stock on a break above $191.00 to account for current market volatility.

Target just below the $241.00 analyst average price target.

Keep your risk low with a maximum of 5% of your total account.

Term = 1-6 months

If you buy 10 Salesforce shares:

If target is met = $500.00 potential profit ($241.00 – $191.00 * 10 shares).

It is wise to keep in mind that stock prices are unlikely to rise in a linear fashion and could actually drop further before bouncing higher, especially given the recent sell-off in global stock markets.

Therefore, pay attention to good risk management, which is one of the most important aspects of successful trading. You should always be aware of how big your potential loss is in trading and the risks involved.

Another factor to consider is the commission as it can affect your profits. The Admirals Invest.MT5 account allows you to buy US stocks starting at $0.02 per share. This means that buying 10 shares of Salesforce will result in a commission of $0.20 ($0.02 * 10 shares).

There is a low minimum transaction fee of $1. So the example trading idea above will generate a total commission of just $1!