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Salesforce

Salesforce (CRM): Solid Fundamentals and Technical AnalysisSoftware as a Service (SaaS) is at the center of attention due to the Coronavirus pandemic (Covid-19). Today, I’ll be analyzing the #1 firm in the Customer Relationship Management industry, Salesforce (CRM). - Salesforce is an extremely quickly growing business, whose founder was an ex-Oracle (ORCL) employee. - They currently employ the tallest building in San Francisco - Salesforce was added to the Dow Jones Industrial Average, and became the first Saas company to be listed on the S&P500 index. What is CRM? - CRM stands for Customer Relationship Management. - It’s essentially a software that allows salespeople to manage client info data - CRM, fundamentally, is a tool to drag new clients, maintain loyal customers, and increase customer value - Prior to Salesforce, companies such as Oracle (ORCL) and IBM (IBM) had to sell hardware, and the software license of the hardware, which all had tremendous installation costs. - As a result, CRM was selectively used by few major corporations - Salesforce revolutionized the marked by making CRM more approachable - They offered CRM through cloud computing, and became the first company to sell software through cloud computing systems. As such, Salesforce managed to offer CRM at a price 90% cheaper than the original cost - CRM is effectively used to provide data for artificial intelligence, and machine learning protocols, and is much more closely related to our lives than we know, from a marketing aspect. Financials - Despite having been in business for over 22 years, Salesforce shows a 29% yoy revenue growth- - This is due to their multi-cloud strategy in which they aggressively acquire other software companies - They reached a record quarterly revenue of $5.15 billion in Q2 2020 - This was mainly due to the explosive demand for work.com, a product that was developed for the Coronavirus pandemic situation. - For the third quarter, Salesforce speculated a revenue of $5.24 billion, which is a 16% increase compared to last year. - The company’s free cash flow increased by 22% in Q2, compared to that of last year, and is estimated to generate $35 billion in 2020. - Salesforces’ Price-to-sales multiple remained at 8-10, indicating that it is relatively undervalued compared to its software counterpart, Adobe. Business Model - Salesforce is well known for its aggressive acquisition of cloud related companies. - By offering marketing, commerce tools, and service cloud to existing Sales Cloud clients, they gather more meaningful data and expand potential client bases - Over 40% of users use multiple clouds, and these people are responsible for 93% of the company’s revenue. - Salesforce offers Service Cloud, which is a service that helps customer support and operations management. - By acquiring Exact Target in 2013, Salesforce has been expanding its marketing cloud base. - The marketing automatization that Exact Target has, allows Salesforce to incorporate cloud computing to emails, social media, messages, and digital apps - By doing this, they can accurately track the efficiency of marketing campaigns, and optimize advertisements - What’s most important to notice about Salesforces’ business model is that just like many other successful businesses, it has managed to establish a cloud ecosystem - Their AppExchange offers optimized CRM tool kits, and institutional level software - Salesforce also runs the Lightning Platform, which allows users to develop software that is optimized for their specific industry and business - Salesforce acquired MuleSoft, a data compiling company, and Tableu, a data analytics company, and this synergy is expected to generate exponential gains in the coming years. - In essence, Salesforce is capitalizing on an opportunity, during times of a digital turning point, by compiling data and software on a single platform Technical Analysis - CRM is currently moving in a clear uptrend, forming higher lows - It has recently topped out after having been listed on the Dow Jones Industrial Average (DJI), but shows strong support in critical areas - We are at a point where prices are testing the 0.236 Fibonacci retracement support - This zone of support is about to converge with the 60 Simple Moving Average (SMA) as well - The Relative Strength Index is moving towards to the oversold territory, having been at extremely overbought levels at the local top Conclusion Salesforce (CRM) is the dominant #1 in the CRM industry. Just as many other successful companies, it possesses a healthy ecosystem, specifically of cloud computing. Fundamentally, it has all the right components of a successful business model, and while the earnings are not as high as we would expect, due to mergers and acquisitions, their profitability can increase significantly over the coming years. Technical analysis also demonstrates a clear uptrend, and a potential buy opportunity. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight.
NYSE:CRMLong
by Michael_Wang_Official
2
Expecting Bullish Price Action on CRM- CRM appears ready to break upwards out of a Bollinger Band squeeze . The same bullish price action occurred when it reported Q2 earnings in late August. - The Commodity Channel Index , a measure of the current price level relative to the 20-day average price level, has moved above +200. This indicating a strong uptrend is beginning. - A bullish MACD crossover is also about to occur, signalling a shift in momentum to the upside. - The RSI indicates CRM is not yet overbought (RSI<70). - Furthermore, the stock is trading above its 20, 50, and 200 moving averages .
NYSE:CRMLong
by otis_bagshots
Salesforce - unbelievable rise, defies gravity, software FTWSalesforce is one of those stocks where every time I think their growth can’t get any better, they turn around and show that their growth is still just getting started. This chart shows that. Check out the quarterly revenue chart on the bottom panel. Wow. Continued growth and now they are doing $5 billion per quarter. They have yet to no *not* grow. At this point I am just totally impressed. The Regression trend on the chart is meant to show how big the pop was as it spiked to all-time highs after beating earnings and being added to the Dow. It's the first cloud stock to enter the Dow. That alone says a lot. Anyways, I am not long and don't plan on buying at any time soon. But, kudos to the team as they have proven me wrong. That's for sure.
NYSE:CRM
by scheplick
11
CRM - SALESFORCE - SHORT SETUP USING PUTSMETHOD: Short SALESFORCE {price at entry 156.40} via : +2 CRM 20 DEC 19 160 PUT @4.40 ; Trading with 0.75 of extrinsic value, well in the money. STRATEGIES: Using CRM day chart : The 20/50 Mean started a crossing downward pattern, and we can look for a new red cloud to form for a short. The Fisher Transform bounce signal has failed and is now showing a continuation short near a critical support price. TACTICS: The plan in terms of stock price : STOP is price > 160 TGT1 153 scale; TGT2 148.75 to exit Trail option price to Break Even once stock price < 154; OR consider scaling as red cloud becomes large You may let the Fisher Transform and 20/50 mean together take you out technically for whatever you get win or lose. Will update in comments, B3 d^.^b
NYSE:CRMShort
by HammondB3
Salesforce New All Time High - Before Christmas?! Nasdaq is down 13.5% off of its ATH while I'm making this call. :) Blood is in the streets. NYSE:CRM Has built a massive Inverse H&S pattern that is completing it's trend reversal process and about to explode to a new all time high. We're seeing accumulation and accelerated buying right now while the market overall is extremely fearful and bearish (overly so). Fundamentally this company is on fire. It's currently significantly undervalued because of the fear in the market and since earnings is weathering the storm like a rock. I've taken this opportunity to accumulate significantly more. Salesforce is on the A-team of the software squad and ideally positioned to harpoon any whales that come near their boat. It has promoted itself as the emblematic tech growth stock promising to smash $16 billion of annual revenue by next year. The number of deals generating more than $1 million was up 46% YOY in the third quarter. Salesforce is poised to continue its ascent and that basically means quarterly sales growth in the mid-20s for the foreseeable future. There is an addressable market of $200 billion and the pipeline is rich as ever could be. Salesforce has really turned the corner with free cash flow and profitability. It was only a few years ago they were turning in heavy losses, but this new Salesforce will be even more profitable as the network effect makes the sum of the parts and each add-on cloud-based software tool even more valuable. Salesforce beat and raised its outlook calming the frayed nerves of investors looking to dump software stocks. Just look at the billings growth that was anticipated at 19%, Salesforce smashed it by 8% coming in at 27%. Not only are they scooping up new customers, but renewals have been just as robust. The truth is that Salesforce can’t roll out enough cloud-based software products to meet the insatiable demand. All of this backs up my thesis that software stocks will be the outsized winners of 2019.
NYSE:CRMLong
by David_Scott
1
Salesforce new all time high before Christmas! R/R very goodNasdaq is down 13.5% off of its ATH while I'm making this call. :) Blood is in the streets. NYSE:CRM Has built a massive Inverse H&S pattern that is completing it's trend reversal process and about to explode to a new all time high. We're seeing accumulation and accelerated buying right now while the market overall is extremely fearful and bearish (overly so). Fundamentally this company is on fire. It's currently significantly undervalued because of the fear in the market and since earnings is weathering the storm like a rock. I've taken this opportunity to accumulate significantly more. Salesforce is on the A-team of the software squad and ideally positioned to harpoon any whales that come near their boat. It has promoted itself as the emblematic tech growth stock promising to smash $16 billion of annual revenue by next year. The number of deals generating more than $1 million was up 46% YOY in the third quarter. Salesforce is poised to continue its ascent and that basically means quarterly sales growth in the mid-20s for the foreseeable future. There is an addressable market of $200 billion and the pipeline is rich as ever could be. Salesforce has really turned the corner with free cash flow and profitability. It was only a few years ago they were turning in heavy losses, but this new Salesforce will be even more profitable as the network effect makes the sum of the parts and each add-on cloud-based software tool even more valuable. Salesforce beat and raised its outlook calming the frayed nerves of investors looking to dump software stocks. Just look at the billings growth that was anticipated at 19%, Salesforce smashed it by 8% coming in at 27%. Not only are they scooping up new customers, but renewals have been just as robust. The truth is that Salesforce can’t roll out enough cloud-based software products to meet the insatiable demand. All of this backs up my thesis that software stocks will be the outsized winners of 2019.
NYSE:CRMLong
by David_Scott
CRM bearish divergence pointing to short term correctionCRM is a name in a long term uptrend I really like for a long, and the technicals are telling me a long signal may be coming up soon. But first, we're getting some pretty clear short signals that I fully intend to take advantage of. CRM has been trending up in a long term channel and recently the lower support line has risen much sharper while the resistance line remains the same, giving us a beautiful descending wedge pattern to play off of. Resistances right now are the Upper Bollinger Band and the upper resistance of the channel. While Salesforce has been able to breach the Upper Bollinger Band in the past, it generally cannot maintain the breakout for long, and always rejects hard when up against the channel resistance. Further, the daily chart is setting up bearish divergence on the MACD and RSI oscillators, adding to my confidence of a short term correction in the near future. We currently have a double bottom on the daily at 158.93, the loss of which could signal an earlier entry. I'm looking for a loss of the hourly higher lows to signal an entry - in the current formation that would be a loss of 158.12 support. My profit target would be to cover in the $150-145 range, and I would cover for a loss if we set a new all time high above 161.08.
NYSE:CRMShort
by McGuireTO