Salesforce stock has gained approximately 14%, and 24% in the past year and YTD respectively through Thursday.
On Thursday, September 23, Salesforce.com Inc (NYSE: CRM) stock closed trading at $277.86, up 7.21%. Notably, the software company raised its full-year 2022 revenue guidance to between $26.25 billion and $26.35 billion. Analysts expected $26.31 billion. The company also gave 2023 revenue guidance of $31.65 billion to $31.80 billion.
Salesforce stock has gained approximately 14%, and 24% in the past year and YTD respectively through Thursday.
According to a press release by the company on Thursday, Salesforce set its FY23 GAAP operating margin guidance of 3.0% to 3.5% and non-GAAP operating margin guidance of 20.0%.
The issued guidance is expected to play out in favor of the company in the coming quarters. Moreover, the company is playing a crucial role in boosting the global economy from the Covid crisis.
“We believe this guidance should be well-received in the context of Salesforce digesting Slack and continuing to deliver ~20% top-line growth,” analysts at Stifel, which has a buy rating on Salesforce stock, wrote in a note to clients.
Notably, the news coincided with the company’s annual Investor Day presentation that was scheduled to take place virtually due to the coronavirus pandemic.
Although Salesforce remains a market leader in the business software market, the company is facing notable competition from upcoming companies like Freshworks Inc (NASDAQ: FRSH). Notably, Freshworks went public earlier this week in the United States and raised $1.03 billion in the IPO, hereby raising its market capitalization to $10.13 billion.
Competition is expected to scale higher in the software and cloud business as more players with promising futures enter the market.
Salesforce Stock and the Market Outlook
As a technology-related company, the Salesforce stock market has attracted notable investors during the pandemic. According to market analytics provided by MarketWatch, CRM stock has added approximately 14%, and 4% in the past three months and one month respectively through Thursday.
Having a clear future path and determined leaders, the company has managed to convince Wall Street of higher returns on investment. A study by MarketWatch indicates 48 ratings have given CRM stock an average of Bug rating.
With a market cap of $253.73 billion, SalesForce is well poised to take up any opportunities presented by the Covid crisis.
In the past 52 weeks, CRM stock has ranged between $201.51 and $279.39. Trading around $279.04 during the extended trading period shows CRM shares are ready to set a new all-time high.
Earlier this week, the company launched its Health Cloud 2.0. “Every company is eager to be together safely with their customers, prospects, employees, and partners as they look to get back to growth and combat digital fatigue,” said Sarah Franklin, President, and Chief Marketing Officer, Salesforce. “We built Dreampass, powered by Health Cloud 2.0, to bring our community together safely in San Francisco for a special in-person experience unlike anything else in the world,” added she.
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