Salesforce Stock Rose as Wedbush Predicted “Increased Deal Stability” in Q1

Salesforce Stock

Salesforce Stock (NYSE:CRM)

Wedbush Securities said that the firm managed by Marc Benioff is anticipated to exhibit “increased deal stability,” citing recent inspections as the basis for their statement. The first-quarter results for Salesforce (NYSE:CRM) are scheduled to be released on May 31.

An analyst named Dan Ives wrote in an investor note that “while the macro is not all roses and rainbows and CRM is still battling through various headwinds, overall we saw stronger cross-sell activity this quarter and particular strength out of the Tableau front with several larger more transformational suite-wide deals inked during the quarter.”

Ives, who has an outperform rating on Salesforce stock, also said that the business is likely making “major strides” to incorporate Slack into its larger software and customer relationship management software suite, which has the potential to spark “major collaboration deals.”

In recent months, Salesforce has implemented several cost-reduction initiatives, which were prompted by the involvement of activist shareholders. However, Ives thinks that this process is essentially over. Consequently, the company’s margins should gain as it strives to balance growth and profitability.

Ives is anticipating more from Salesforce stock on artificial intelligence, as the company is looking to monetize the technology with its “massive installed base.” Artificial intelligence has caught the thinking and attention of many investors and corporations.

Ives said in his email that “we believe this to be a major land grab opportunity that could significantly benefit CRM over the coming years and could increase overall revenue by more than $4 billion annually based on our estimates and fieldwork by 2025.” “We believe this to be a major land grab opportunity that could significantly benefit CRM over the coming years.”

On average, market watchers anticipate that Salesforce will generate $1.61 per share on sales of $8.17 billion.

Featured Image: Pixabay @ RJA1988

Please See Disclaimer

About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.