Salesforce (CRM) Offering Possible 14.42% Return Over the Next 7 Calendar Days

Salesforce's most recent trend suggests a bearish bias. One trading opportunity on Salesforce is a Bear Call Spread using a strike $160.00 short call and a strike $165.00 long call offers a potential 14.42% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $160.00 by expiration. The full premium credit of $0.63 would be kept by the premium seller. The risk of $4.37 would be incurred if the stock rose above the $165.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Salesforce is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Salesforce is bearish.

The RSI indicator is at 26.96 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Salesforce

Edited Transcript of CRM earnings conference call or presentation 3-Dec-19 10:00pm GMT
Wed, 11 Dec 2019 19:46:26 +0000
Q3 2020 Salesforce.Com Inc Earnings Call

Software Analysts See More Volatility in an Uncertain 2020
Wed, 11 Dec 2019 17:50:30 +0000
(Bloomberg) — High-multiple software stocks have struggled over the past few months as analysts reassess their growth prospects and valuations, and the group could see additional weakness in 2020, creating an environment where more-defensive legacy names are more favored, analysts said on Wednesday.“There is a greater level of concern that the global economy could enter into a recessionary environment next year,” wrote Gregg Moskowitz, an analyst at Mizuho Securities. As a result, “there may be an increased risk of a rotation to value stocks that could cause multiple compression among higher growth companies.”Despite a potential risk to stock multiples, the firm expects software demand to remain robust next year, particularly in the sub-sectors of cybersecurity and cloud computing. It added that “barring a significant recession,” many companies would “navigate these issues very well,” and views both Microsoft Corp. and Salesforce.com Inc. as well positioned.Salesforce was also singled out by Cowen, which named the company as one of its “best ideas” for 2020.Next year “could prove to be a volatile year for higher multiple stocks given trends we’ve seen over the last few months,” Cowen analyst J. Derrick Wood wrote. In contrast, he said, Salesforce looks like “an attractive defensive growth investment,” given its lower valuation and “positioning around high growth/high value segments of software.”A basket of high-multiple software stocks tracked by Goldman Sachs fell as much as 2.6% on Wednesday, and the index was on track for its sixth straight decline, its longest streak of declines since October 2018. Even with the recent decline, the index remains up more than 40% in 2019.Among the names falling on Wednesday was Slack Technologies, down over 6%, Coupa Software, off about 4% and Zscaler, which fell 3.5% despite bullish commentary from BofA. Atlassian Corp. sank 5.7%, while Domo Inc. was off 4.2%. Cornerstone OnDemand and HubSpot each fell more than 3%. Separately, Zendesk fell 1.7%, on pace for a fifth straight decline.UBS analyst Jennifer Swanson Lowe on Wednesday wrote that small- and mid-cap software-as-a-service companies were “working through the bumps,” even as the overall demand environment for software was “healthy” going into the end of the year.The comments followed a UBS conference, where companies like Zendesk, Hubspot and Domo “highlighted strong secular demand trends, but also scaling challenges,” according to a report. Lowe added that software pertaining to security, cloud computing and automation were among the categories with “strong market momentum.”A key catalyst for the software sector will come Thursday afternoon, when Adobe Inc. is scheduled to report its fourth-quarter results. In focus is whether the company is able to maintain revenue growth above 20%; Wall Street is currently expecting growth of 21%, according to data compiled by Bloomberg.“How investors react to Adobe’s earnings and commentary could presage how software companies and their underlying stock prices will behave in 2020,” wrote Richard Davis, an analyst at Canaccord Genuity.He said the 20% growth threshold “has taken on a near mythical importance,” and suggested that if companies fail to maintain this level, investors may start “changing their tune” on whether they are comfortable with growth that doesn’t come with operating leverage.To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm, Jeremy R. CookeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Salesforce: This Stock Flattened for a Good Reason
Wed, 11 Dec 2019 17:39:20 +0000
The tech giant has seen its stock price move sideways, driven by a weak earnings outlook Continue reading…

Salesforce.com (CRM) Upgraded to Buy: Here's What You Should Know
Wed, 11 Dec 2019 17:00:05 +0000
Salesforce.com (CRM) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Zumiez, Yext, Adobe and Salesforce highlighted as Zacks Bull and Bear of the Day
Wed, 11 Dec 2019 13:00:01 +0000
Zumiez, Yext, Adobe and Salesforce highlighted as Zacks Bull and Bear of the Day

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