Followers | 680 |
Posts | 141062 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Monday, March 23, 2020 9:07:38 PM
By: TheStreet | March 23, 2020
• Salesforce has been hammered, falling 40% from peak to trough. It's time for a closer look at the stock.
Many stocks have been unfairly punished amid this recent selloff related to the coronavirus pandemic. Among them is Salesforce (CRM).
Over the past month, investors have seen the S&P 500, Dow Jones Industrial Average and Nasdaq all slide more than 30% from peak to trough. It’s been a brutal stretch as one of the most aggressive bear markets has developed following this black swan event.
It’s an ugly reminder about how quickly things can change. However, for long-term investors, it also offers a window of opportunity.
The equity market topped out on Feb. 19. Six days later, Salesforce reported better-than-expected earnings with strong guidance for the first quarter. Management even raised its full-year earnings and revenue outlook. It didn’t matter.
Despite rallying more than 21% from last week’s low, Salesforce is still down more than 28% from its highs last month. Admittedly, shares have a high valuation. But the cloud isn’t going away and the company has incredible growth. That has to equate to a bargain at some point.
Trading Salesforce Stock
Weekly chart of CRM stock.
Chart courtesy of Stockcharts.com
Above is a weekly chart of Salesforce stock. Up aggressively from the lows just made on Friday, it’s hard to be a buyer in the $140s when shares were sub-$120 so recently.
Many investors believe that we haven’t seen the lows in the S&P 500 yet, or that if we have, we will surely retest them. After all, the coronavirus situation is bound to get worse before it gets better.
If that’s the case and investors get another shot at Salesforce stock near the 200-week moving average, long-term growth investors may want to consider taking a shot. That’s not an all-in bottom call, but rather, a suggestion for accumulating shares of a high-quality company knowing that lower prices are possible.
It’s a bit concerning that the stock so easily knifed through the 100-week moving average, an area that has been solid support over the past 18 months. If this mark is quickly reclaimed, CRM stock could see the $165 breakout level again. If instead the 100-week moving average acts as resistance, a retest of the $115 breakout level and the 200-week moving average may come to fruition.
For some investors, Salesforce will always have too high of a valuation, and that’s fine. But for growth investors, this company just reported strong results and should continue to be a long-term winner. Buying near $120 - 39% off the highs - seems like a good start.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent CRM News
- Salesforce Unveils Zero Copy Partner Network, an Ecosystem Committed to Secure, Bidirectional Zero Copy Integration with Salesforce Data Cloud • Business Wire • 04/25/2024 07:15:00 AM
- Li Auto Stock Drops 7.3% Amid Tesla Price Cuts, Salesforce Retreats from Informatica Deal, and Other Market Updates • IH Market News • 04/22/2024 12:09:21 PM
- IHG Hotels & Resorts Aims to Boost Guest Loyalty with Salesforce • Business Wire • 04/22/2024 12:00:00 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- Walgreens Slashes Annual Profit Forecast; MillerKnoll Nosedives 17% on Bleak 4Q Outlook, and Latest News • IH Market News • 03/28/2024 01:48:04 PM
- Analysts’ Recommendations for March 27th: FedEx, Visa, Uber, Adobe… • IH Market News • 03/27/2024 12:13:10 PM
- Super Micro Computer and Seagate Shares Surge on Analyst Optimism in Pre-Market Trading, and Latest News • IH Market News • 03/26/2024 11:20:49 AM
- Salesforce Grants Equity Awards to Spiff Employees Under Its Inducement Equity Incentive Plan • Business Wire • 03/22/2024 08:02:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 08:26:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/08/2024 10:09:17 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 10:17:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 09:37:05 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 03/06/2024 09:32:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 09:29:37 PM
- Turtle Bay Resort Redefines Personalized Hospitality with Salesforce’s Einstein 1 Platform • Business Wire • 03/06/2024 06:00:00 PM
- Salesforce Launches Einstein 1 Studio: Low-Code AI Tools for Customizing Einstein Copilot and Embedding AI into Any CRM App • Business Wire • 03/06/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:56:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:50:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 12:39:16 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 09:05:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:28:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 11:24:59 PM
- Snowflake Stock Plummets 20.3% After CEO Transition; C3.ai, Okta, and Duolingo Surge Post-Strong Quarterly Reports, and More • IH Market News • 02/29/2024 11:09:45 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/28/2024 09:15:49 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM