Trading Salesforce After Fiscal Q3 2024 Performance

December 06, 2023 04:30

Salesforce is a cloud-based software company based in California with 110 offices worldwide. It provides customer relationship management (CRM) software for many corporate companies. Its products include Tableau, MuleSoft and Slack.   

Learn more about Salesforce's fiscal third-quarter performance and what the analysts are forecasting for the stock.

Stock: Salesforce Inc
Symbol for Invest.MT5 Account: CRM
Date of Idea: 5 December 2023
Time Line: 1 - 6 months
Entry Level: $264.00
Target Level: $345.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Salesforce Fiscal Q3 2024 Performance

Here are some of the key highlights from the latest fiscal third-quarter earnings report from Salesforce: 

  • Earnings per share of $2.11 versus $2.06 expected 
  • Revenue of $8.72 billion in line with analyst estimates 
  • Revenue up 11% from same time last year 
  • $1.9 billion returned to shareholders in third-quarter share repurchases 
  • Fourth-quarter 2024 revenue guidance up 10% year on year of $9.18 billion to $9.23 billion 
  • Lowers full-year 2024 revenue guidance to $34.75 billion from $34.8 billion 

Salesforce posted a third-quarter 2024 performance that beat analyst estimates on most metrics. The stock price has risen nearly 90% this year which has already outperformed the Nasdaq 100 index which is up around 40% so far this year. Most of Salesforce's gains and profits have been attributed to its focus on lowering expenses at the beginning of the year.  

In January, Salesforce announced plans to cut the workforce by 10%, or 7,000 employees, and reduce some of its office space. Co-CEO Marc Benioff stated the company hired too many employees while revenue accelerated during the pandemic but now must make the difficult decision to let some go. 

While the company has increased its revenue guidance for the year, its third-quarter revenue gain of 11% is much lower than its usual 20% uplift. This is in line with the slowdown in the tech sector as businesses reduce their spending due to higher interest rates and inflation. While the stock has already benefitted from lower expenses due to cost cost-cutting measures, much of this may already be priced in.  

Therefore, investors will want to see higher growth rates from increased customer spending. If this does not materialise it could cause a decline in the company's share price, so it is an important trend to watch.

Salesforce Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Salesforce stock forecast in the past 3 months, there are currently 26 buy, 12 hold and 1 sell ratings on the stock. The highest price level for a Salesforce stock forecast is $345.00 with the lowest price target at $159.00. 

The average price target for a Salesforce stock forecast is $275.00.

Source: TipRanks, 5 December 2023


An Example Trading Idea for the Salesforce Stock Price

An example trading idea for the Salesforce share price could be as follows:  

  • Buy the stock on a break above the post-earnings high at $264.00 to allow for volatility. 
  • Target just below the highest analyst price target of $345.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Salesforce shares:  
    • If target is reached = $810.00 potential profit [($345.00 - $264.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the uncertainty around the slowdown in spending from businesses adapting to higher interest rates. 

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Salesforce stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Salesforce Stock in 4 Steps  

With Admirals, you can buy shares in companies like Salesforce with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Salesforce. Monthly. Date: Jan 2016 to Nov 2023, captured on 5 Dec 2023. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade Salesforce stock today ▼▼▼ 

Do You See the Salesforce Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Salesforce share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.