Elon Musk's Tesla isn't the only company to pay homage to a genius like Nikola Tesla. Salesforce.com, headed by CEO Marc Benioff, has launched the Einstein 1 platform in honor of Albert Einstein. Powered by artificial intelligence, the new features lifted CRM stock past one buy point and toward another.
Showcasing major advancements for Salesforce Data Cloud and Einstein AI capabilities, Einstein 1 is built on Salesforce's underlying metadata framework. Now natively integrated with the Einstein 1 platform, clients can now connect any data to create a unified profile of their customer. It also infuses AI, automation and analytics into every customer experience.
While Salesforce did not join fellow enterprise software firms ServiceNow, Palantir and SAP on this month's list of new buys by the best mutual funds, it has posted three quarters of rising fund ownership. Plus, 94 funds with an A+ rating from IBD own shares in Salesforce stock.
With a spot on the IBD 50 and the IBD Leaderboard watchlist, CRM stock sports a strong 96 Composite Rating. Industry peers PLTR stock — which launched a breakout after getting featured in the IBD Stock Analysis last week — and ServiceNow also earn stellar ratings.
Salesforce Taps AI Wave To Drive 78% Growth
As a pioneer in cloud-based customer relationship management (CRM) software, Salesforce helps companies find more prospects, close more deals, and connect with customers at scale.
The San Francisco, Calif.-based company operates across all sectors, from automotive and energy to retail and the public sector. Clients include leading brands such as Williams-Sonoma, Spotify and Ford, just to name a few.
On Aug. 30, Salesforce reported fiscal 2024 second-quarter results, posting earnings of $2.12 a share. That marked a 78% jump over the prior-year quarter as the company drove an 11% gain in revenue to just over $8.6 billion.
Salesforce is scheduled to report fiscal Q3 numbers on Nov. 30 after the market close. Company guidance calls for revenue in the range of $8.70 billion to $8.72 billion and diluted earnings per share of $1.02 to $1.03. For the full fiscal year, Wall Street forecasts earnings growth of 53%.
CRM Stock Clears One Buy Point, Eyes Another
Salesforce has cleared an aggressive entry point near 215. Choppy action since July has now transformed a cup with handle into a consolidation pattern. Proving how patterns in stock charts are subject to change and interpretation, CRM stock also presents elements of a double bottom that offers a 228.79 buy point.
The stock rose around 2% Monday.
Earlier in the month, Salesforce climbed back above its 50-day moving average. After successfully testing that support in the days that followed, CRM stock gapped up on Nov. 14 in above-average volume.
With earnings due in less than two weeks, Salesforce continues to close in on the 228.79 entry.
Meanwhile, PLTR stock and ServiceNow have blasted past their buy zones and are now extended. Tesla stock continues to navigate its own choppy action as one analyst views canceling Cybertruck as a potential positive.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
