Salesforce ( CRM Quick Quote CRM - Free Report) is scheduled to report first-quarter fiscal 2024 results on May 31. The cloud-based software maker’s first-quarter performance is likely to have benefited from the robust demand environment as customers are undergoing a major digital transformation. Click here to know how CRM’s overall fiscal first-quarter results are likely to be. Cloud Adoption to Boost Q1 Revenues
The rapid adoption of software-as-a-service-based platforms amid the ongoing hybrid working trend is expected to have spurred the demand for Salesforce’s cloud-based solutions. Salesforce’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.
Salesforce’s initiatives to capitalize on the overseas demand for cloud-based applications are anticipated to have bolstered the top line during the period in discussion. Further, the improved customer experience is anticipated to have aided the cloud segment.
Salesforce’s ability to provide an integrated solution for customers’ business problems is expected to have been the key driver. CRM’s Customer 360 Truth platform, which helps connect the data from sales, service, marketing and commerce and build a single Salesforce ID for each customer, is likely to have boosted its performance. Also, its focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.
However, a decline in software spending by small and medium businesses amid ongoing macroeconomic headwinds and geopolitical issues might have affected Salesforce’s fiscal first-quarter performance. Further, stiff competition from Oracle and Microsoft is a concern, along with forex headwinds.
Zacks Rank & Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold). Shares of CRM have soared 62.5% year to date (YTD).
Some better-ranked stocks from the broader technology sector are
Meta Platforms ( META Quick Quote META - Free Report) , Manhattan Associates ( MANH Quick Quote MANH - Free Report) and CrowdStrike ( CRWD Quick Quote CRWD - Free Report) . While Meta and Manhattan Associates each sport a Zacks Rank #1 (Strong Buy), CrowdStrike carries a Zacks Rank #2 (Buy). You can see . the complete list of today's Zacks #1 Rank stocks here
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