Here's How Much Salesforce Stock Is Expected to Move After Earnings Wednesday

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Key Takeaways

  • Salesforce is scheduled to post earnings after the closing bell Wednesday, with traders expecting a big move from the software stock following the results.
  • Analysts warned Salesforce’s growth could be muted in the short term, with checks suggesting customers are watching their spending.

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Salesforce is slated to report earnings after the market closes on Wednesday, with traders anticipating a big move from the software giant’s stock in the days that follow.

Based on current options pricing, traders expect Salesforce (CRM) stock could swing up to 9% in either direction by the end of the week. A move of that magnitude from Monday’s close could bring the stock back above $194, recovering some of its recent losses, or drag it down to $162, its lowest level in three years.

Salesforce’s stock has lost about a third of its value since the start of the year amid a broader rout in software stocks after new AI tools from Anthropic added fuel to worries about the technology’s potential to disrupt the industry.

Why This Matters to Investors

Salesforce could have an opportunity Wednesday to improve sentiment around its stock, if it can show strong demand for its AI offerings, and convince investors of its ability to defend against competition in the space.

Analysts at UBS and Oppenheimer recently cut their price targets for Salesforce to $200 and $275, respectively, ahead of Wednesday’s results. They suggested Salesforce’s growth could be muted in the short term as the company faces some headwinds from growing competition and field checks suggested customers may be watching their spending.

Salesforce is seen reporting adjusted earnings per share of $3.05 on a 12% year-over-year jump in revenue to a record $11.18 billion for the fourth quarter, according to estimates compiled by Visible Alpha.

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Analysts have largely stayed bullish on Salesforce despite the software giant’s recent slump. Of the 20 analysts with current ratings tracked by Visible Alpha, 15 have “buy” or equivalent ratings compared to five “hold” ratings. Their average price target of $313 would imply upside of more than 75% from Monday’s close.

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