Salesforce's most recent trend suggests a bearish bias. One trading opportunity on Salesforce is a Bear Call Spread using a strike $245.00 short call and a strike $250.00 long call offers a potential 31.58% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $245.00 by expiration. The full premium credit of $1.20 would be kept by the premium seller. The risk of $3.80 would be incurred if the stock rose above the $250.00 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 57.48 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
Alibaba, Once a Fund Darling, Dumped By Point72, Hillhouse
Wed, 24 Feb 2021 22:36:18 +0000
(Bloomberg) — Alibaba Group Holding Ltd, once the most valuable company in China, is turning from a global hedge fund favorite to something less than desirable.Investors from hedge fund titans such as Point72 Asset Management and Moore Capital Management to Canadian and U.S. pension funds dumped 101 million of Alibaba’s American depositary receipts in the fourth quarter, cutting the market value of their holdings by $89 billion, according to filing data. It was the biggest investment reduction among U.S. traded companies, more than three times the second-most sold stock, Salesforce.com Inc..Once a symbol of China’s New Economy, the e-commerce giant founded by Jack Ma now finds itself at the forefront of the government’s campaign to rein in the sprawling power of tech giants. Alibaba’s shares, which are traded on the New York Stock Exchange, have slumped about 18% since November, when regulators in Beijing halted the $35 billion initial public offering of Alibaba’s affiliate Ant Group at the last minute. Government watchdogs have also ordered Ant to overhaul its business and began an antitrust investigation of Alibaba.Meanwhile, Alibaba, which has invested in a wide range of sectors from online grocery to ride-hailing and artificial intelligence, will face restraints on future expansion. Chinese antitrust watchdogs used to pay little attention to investment led by internet companies, but have begun strengthening enforcement amid Beijing’s push to root out monopoly power. In December, China’s antitrust watchdog fined Alibaba and two other companies over years-old acquisitions. Regulators said the e-commerce heavyweight should have sought government approval before increasing its stake in a department store chain in 2017.If someone were to make an example of how to take down a monopoly in China, they’ve got nothing better than Alibaba, said Rajiv Jain, who oversees $73 billion in assets as chairman of GQG Partners LLC in Fort Lauderdale, Florida. “The long-term growth trajectory is now different from what we thought.”GQG liquidated all of its 9.6 million ADRs in the fourth quarter, valued at $2.8 billion, according to filing data. Jain said he had owned Alibaba shares since the company’s initial public offering in 2014, when he was the chief investment officer at Vontobel Asset Management.An Alibaba spokesperson declined to comment on investors selling the stock.Investors are questioning whether Alibaba can sustain its meteoritic rise amid the regulatory scrutiny. It now could face penalties of as much as 10% of its revenue if it’s found to have violated antitrust rules. Those rules are against practices such as forced exclusive arrangements with merchants, known as “Pick One of Two,” predatory pricing and algorithms favoring new users. Tightening government oversight also threatens to curb Ant’s dominance in online payments and scale back its expansion into consumer lending and wealth management.Alibaba has said that it’s working with regulators on complying with their requirements as the antitrust investigations continue. Share prices have recovered somewhat since Ma resurfaced in late January after vanishing from the public sight following the government’s crackdown on his businesses. The shares fell about 1% to $250.34 in New York Wednesday. Alibaba sellers are Who’s Who of hedge fund stars. Steve Cohen’s Point72 dumped all its $413 million in holdings last quarter fourth quarter. Louis Bacon’s Moore Capital slashed its holdings by 99%, while Dan Loeb’s Third Point cut its stake by 45%.Other prominent investors cashing out include Hillhouse Capital Advisors, which sold its $1.2 billion holdings. Canada Pension Plan Investment Board reduced its stake by 31%, or $2.1 billion.Izzy Englander’s Millennium Management LLC was among a minority group of investors who scooped up Alibaba, counting it as its sixth-largest holdings.Representatives at these firms either declined to comment or didn’t reply to emails or calls.Rather than pulling out, some investors may have swapped their ADRs with shares traded in Hong Kong to avoid the risk of being caught in the political tension between the U.S. and China, said Brendan Ahern, chief investment officer at Krane Funds Advisors LLC, which runs several China-focused exchange-traded funds in the U.S.Former U.S. President Donald Trump signed legislation in December that could kick Chinese companies off of U.S. exchanges unless American regulators can review their financial audits. The administration had also considered banning U.S. investments in Chinese companies, including Alibaba and Tencent, before deciding against it.“Alibaba is a very well-managed company,” said Ahern. “We are a big believer in the company and management.”Analysts share Ahern’s upbeat sentiment. All but three of 61 analysts rate the company as a buy.For GQG’s Jain, the regulatory uncertainties mean the risk-reward calculation is stacking against Alibaba. For instance, it’s becoming much more difficult for the company to grow its business by acquiring smaller players.“There’s more downside than upside,” said Jain, whose Goldman Sachs GQG Partners International Opportunities Fund beat 83% of its peers over the past three years. “The regulatory risk is usually underappreciated until it’s too late. In other words, you cannot handicap that.”(Update with Ailbaba’s share price in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Earnings Preview: Salesforce.com
Wed, 24 Feb 2021 15:20:19 +0000
Salesforce.com (NYSE:CRM) unveils its next round of earnings this Thursday, February 25. Here is Benzinga's everything-that-matters guide for the earnings announcement. Net Income, Earnings, And Earnings Per Share Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS. Earnings And Revenue Based on management's projections, Salesforce.com analysts model for earnings of $0.75 per share on sales of $5.68 billion. Salesforce.com reported a profit of $0.66 per share when it published results during the same quarter last year. Sales in that period totaled $4.85 billion. What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter? Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the “consensus estimates”; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an “earnings surprise”, which can really move a stock depending on the difference between actual and estimated values. View more earnings on CRM If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 13.64%. Revenue would be up 17.09% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020 EPS Estimate 0.75 0.67 0.69 0.55 EPS Actual 1.74 1.44 0.70 0.66 Revenue Estimate 5.25 B 4.90 B 4.85 B 4.75 B Revenue Actual 5.42 B 5.15 B 4.87 B 4.85 B Stock Performance Shares of Salesforce.com were trading at $235.96 as of February 23. Over the last 52-week period, shares are up 36.78%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release. Do not be surprised to see the stock move on comments made during its conference call. Salesforce.com is scheduled to hold the call at 17:00:00 ET and can be accessed here. See more from BenzingaClick here for options trades from BenzingaFly Leasing's Earnings OutlookPreview: ADT's Earnings© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Can Salesforce Snap Out of Its Funk With Earnings?
Wed, 24 Feb 2021 11:45:00 +0000
Salesforce has been consolidating for months now. Will earnings finally break it free? Let's look at the chart for some key levels.
Top 15 Financial Centers/Cities of The World
Wed, 24 Feb 2021 10:12:19 +0000
In this article, we are going to talk about the Top 15 Financial Centers/Cities of The World. You can skip our detailed explanation of the criteria we used to rank the cities in our list and go directly to the Top 5 Financial Centers/Cities of The World. The geographic placement of a business plays a […]
2 Great Starter Stocks for New Investors
Tue, 23 Feb 2021 16:53:44 +0000
Regardless, companies with a competitive advantage tend to outperform the pack, which can lead to big gains for shareholders. With that in mind, both Amazon (NASDAQ: AMZN) and salesforce.com (NYSE: CRM) look like good stocks for new investors to buy. Amazon is a great example of a company with a strong advantage.
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