The Salesforce (NYSE: CRM) stock price will be in the spotlight on Wednesday as the company delivers its first quarterly results after combining with Slack. The shares closed at $259 on Tuesday, bringing its total market capitalization to more than $240 billion.
Salesforce earnings preview
Salesforce is one of the biggest SAAS companies in the world. Its primary product is the customer relations management (CRM) software that allows companies to communicate better with its customers.
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Over the years, Salesforce has expanded its service offerings mostly through acquisitions. Recently, it acquired Slack for more than $27.7 billion. The acquisition will help the firm compete more with Microsoft whose Teams product is equally popular.
Salesforce is also in the business intelligence industry through its Tableau acquisition. It is also in the app management and integration industry through its Mulesoft acquisition. Salesforce has also acquired several other smaller companies over the years.
The Salesforce stock price will be in the spotlight on Wednesday as the company publishes its quarterly results. Data compiled by SeekingAlpha shows that analysts expect its revenue to rise to $6.25 billion.
This will be a strong performance from the previous quarter’s $5.92 billion. This growth will be partly because this quarter’s results also include that of Slack. The company made more than $5.1 billion in the same quarter last year. Still, historically, Salesforce has a long track record of beating analysts estimates.
Analysts are generally optimistic about the CRM stock price. Those at Cowen expect that the Salesforce stock price will rise to $290, which is about $30 above the current level. Similarly, those at Barclays, Baird, Goldman Sachs and JMP Securities expect that the shares will keep rising to more than $280.
Most of these analysts cite Salesforce long contracts with customers and its growing market share in segments that are seeing strong growth.
Salesforce stock price forecast
Turning to the daily chart, we see that the CRM stock price has been in a strong bullish trend recently. Most notably, the stock moved above the key resistance level at $251, which was the highest level in July and August.
The stock has also risen above the 25-day and 50-day exponential moving averages (EMA) while the MACD remains above the neutral level. Therefore, the shares will likely keep rising as bulls target the next key resistance at $300.
However, there is a likelihood that the Salesforce share price will retreat to the support at $251. This is known as a break and retest approach.
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