- Salesforce stock trended lower the day before earnings.
- Q2 earnings will be released in Wednesday's post-market.
- There is some uncertainty about guidance in the second half of the year.
- Nvidia earnings on Wednesday are holding back the market in the first half of the week.
Salesforce (CRM) stock pulled back 0.4% on Tuesday, a day before the customer management software maker is set to deliver second-quarter earnings. Shares of CRM were down lower at the start of the session but recovered somewhat from the early sell-off.
The Dow Jones index, of which Salesforce is a component, also sank at the start of the session before ending the day up by a hair.
The market has remained moribund at the start of the week due to widespread worries about Nvidia’s (NVDA) earnings release, which will appear simultaneously with Salesforce after market close on Wednesday.
Salesforce stock news
The vast majority of earnings revisions for Salesforce’s upcoming result have been downward, which should give many traders pause.
As it now stands, Wall Street consensus expects Salesforce to earn $2.36 in adjusted earnings per share (EPS), up 11% YoY, and $1.33 in GAAP EPS. Revenue is projected to arrive at $9.23 billion or a 7% rise above the prior year.
Citi was out with a client note arguing that the company led by Marc Benioff would easily meet the quarter’s consensus but that the share price could suffer from a poor outlook in the back half of the year.
Citi analyst Tyler Radke said that the comparisons would be difficult in coming quarters due to Salesforce’s megadeal with Amazon Web Services to sell its products on the latter’s cloud marketplace, which closed in November 2023. Additionally, the sentiment among Salesforce partners seems tepid.
Radke wrote that “partners noted a still tepid and elongated demand environment with a prioritization on budget optimization."
Guidance given during the Q1 release in May was already weak. Wedbush Securities’ Dan Ives, however, seems less worried.
“While there is clearly still some disruption in the field, we believe overall CRM should be able to meet and potentially exceed Street expectations with some improvement in the field,” Ives wrote.
Salesforce stock chart
CRM stock has been trading within a wedge. Now that it is near the top descending trendline, a break above would likely lead to a large spike higher. The next available resistance region is the $287 to $290 range from May. Any break above $290 would signify that the current downtrend was over.
A bad earnings call would likely only send CRM back to the $240s, so the downside seems well-supported.
CRM daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold surges to fresh record high above $3,400 Premium
Gold extends its uptrend and trades at a new all-time high above $3,400 on Monday. Concerns over a further escalation in the US-China trade war and the Fed’s independence smash the US Dollar to three-year troughs, fuelling XAU/USD's rally.
EUR/USD clings to strong gains near 1.1500 on persistent USD weakness
EUR/USD gains more than 1% on the day and trades at its highest level since November 2021 near 1.1500. The relentless US Dollar selling helps the pair push higher as fears over a US economic recession and the Federal Reserve’s autonomy grow.
GBP/USD tests 1.3400 as USD selloff continues
GBP/USD continues its winning streak, testing 1.3400 on Monday. The extended US Dollar weakness, amid US-Sino trade war-led recession fears and heightened threat to the Fed's independence, underpin the pair following the long weekend.
How to make sense of crypto recovery – Is it a buy or fakeout
Bitcoin (BTC), Ethereum (ETH) and XRP, the top three cryptocurrencies by market capitalization, extend their last week’s recovery on Monday, even as trader sentiment is hurt by the US President Donald Trump’s tariff policy and announcements.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.