What's Going On With Salesforce Stock?

Benzinga ·  May 25 01:18

Salesforce, Inc. (NYSE:CRM) shares are trading lower Friday after Workday, Inc. (NYSE:WDAY) reported its first-quarter results and lowered its forward-looking guidance.

What Happened With Workday:

Workday reported quarterly sales of $1.99 billion which beat the analyst consensus estimate of $1.973 billion and earnings of $1.74 per share. However, the company lowered its forward guidance and now sees second-quarter subscription revenue of $1.895 billion and fiscal-year subscription revenue of between $7.7 billion and $7.725 billion.

Salesforce Earnings Preview:

Salesforce is set to report its first-quarter results on May 29 after the bell and will host a conference call to discuss the results at 5:00 p.m. ET the same day. According to estimates from Benzinga Pro, analysts expect the company to report earnings of $2.38 per share and quarterly sales of $9.147 billion.

RBC Capital analyst Rishi Jaluria reiterated Salesforce with an Outperform rating and maintained a $350 price target on Friday.

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Is CRM A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Salesforce's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Salesforce does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 11.76%, you'll need to buy a share of Cato by June 10, 2024. Once done, you can expect to receive a nominal payout of $0.17 on June 24, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Salesforce will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

CRM Price Action: According to Benzinga Pro, Salesforce shares are down 1.98% at $273.06 at the time of publication Friday.

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The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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