Salesforce Earnings Report May Spark Stock Surge
Salesforce is set to release its earnings report on Wednesday afternoon, and investors are eagerly awaiting the results. According to analysts, the software maker's stock could surge to its highest point since January, with a potential gain of up to 7% by the end of the week.
This would lift Salesforce shares to $218, which is their highest point since January, or drag them below $189 if the results are disappointing. The company has lost nearly one-quarter of its value since the start of the year due to concerns that growing AI adoption could lead companies to build their own tools and cut back spending on external software.
Analysts expect Salesforce to report growing sales and profits, with revenue projected at $11.33 billion, up 11% from last year, and adjusted earnings per share seen coming in at $3.28. Wall Street analysts are more bullish than bearish on Salesforce, with 12 out of 18 tracked by Visible Alpha considering it a 'buy,' while only one has issued a 'sell' rating.
JP Morgan's recent upgrade to an 'overweight' rating and $250 price target suggests that the company's core business will accelerate in the second half of the year, with AI disruption limited to a small portion of the business. Investors will be watching for signs that Salesforce's business is not being disrupted by AI.