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Salesforce Pops on Earnings Strength: ETFs in Focus
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Salesforce (CRM - Free Report) reported its second quarter earnings on Wednesday after the bell, recording beats on both lines. Shares surged about 5.3% responding to the earnings results. The company came out with quarterly adjusted earnings of $2.12 per share, beating the Zacks Consensus Estimate of $1.90 per share. This compares to earnings of $1.19 per share a year ago.
Salesforce.com, which belongs to the Zacks Computer - Software industry, posted revenues of $8.6 billion for the quarter ended July 2023, surpassing the Zacks Consensus Estimate by 0.93%. This compares to year-ago revenues of $7.72 billion. The company has topped consensus estimates for revenues and earnings each time over the last four quarters.
Upbeat Outlook
Additionally, the company raised its 2024 revenue outlook to $34.7 billion to $34.8 billion, after previously seeing $34.5 billion to $34.7 billion, beating estimates of $34.66 billion. “Against more cautious investor sentiment, CRM's 2Q results were solid with upside to most key metrics, and a more significant raise to annual growth and profitability targets”, per a Citigroup analyst, as quoted on Yahoo.
Raymond James analyst Brian Peterson said “we are also pleased to see impressive growth across clouds, with Data Cloud remaining the company’s quickest growing at +16% y/y”, as quoted on Yahoo. In any case, the stock is riding the AI hype this year with year-to-date gains of 61%.
"We are very thirsty to make sure that Salesforce is the No. 1 AI CRM, and we have done a lot organically to do that in the last six months," Salesforce CEO Marc Benioff said to analysts on the company's earnings call, quoted on Yahoo.
Salesforce-Heavy ETFs in Focus
Salesforce has a Zacks Rank #2 (Buy) and an upbeat Growth score of “A”. However, the stock has a moderate Value score of “C” and a downbeat Momentum score of “D.” Hence, if investors want to tap Salesforce’s success in the basket form, they may play the below-mentioned ETFs.
The underlying S&P North American Expanded Technology Software Index comprises of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries. The fund charges 41 bps in fees.
Invesco NASDAQ Internet ETF (PNQI - Free Report) – Salesforce has 7.02% Exposure
The underlying Nasdaq CTA Internet Index is a modified market-capitalization weighted index designed to track the performance of the largest & most liquid U.S.-listed companies engaged in internet-related businesses & that are listed on one of the three major U.S. stock exchanges. The fund charges 60 bps in fees.
iShares U.S. Tech Independence Focused ETF (IETC - Free Report) – Salesforce has 5.54% Exposure
The iShares U.S. Tech Independence Focused ETF seeks to provide access to U.S. companies with technology exposure while targeting increased exposure to U.S. firms with a greater proportion of technological capabilities, revenues, and production in the U.S. and select global markets. The fund charges 18 bps in fees.
The fund looks to attain long-term growth of capital. Normally investing at least 80% of assets in securities of disruptive technology companies. Fidelity's disruptive strategies seek to identify innovative developments that could signal new directions for delivering products and services to customers. The fund charges 50 bps in fees.
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Salesforce Pops on Earnings Strength: ETFs in Focus
Salesforce (CRM - Free Report) reported its second quarter earnings on Wednesday after the bell, recording beats on both lines. Shares surged about 5.3% responding to the earnings results. The company came out with quarterly adjusted earnings of $2.12 per share, beating the Zacks Consensus Estimate of $1.90 per share. This compares to earnings of $1.19 per share a year ago.
Salesforce.com, which belongs to the Zacks Computer - Software industry, posted revenues of $8.6 billion for the quarter ended July 2023, surpassing the Zacks Consensus Estimate by 0.93%. This compares to year-ago revenues of $7.72 billion. The company has topped consensus estimates for revenues and earnings each time over the last four quarters.
Upbeat Outlook
Additionally, the company raised its 2024 revenue outlook to $34.7 billion to $34.8 billion, after previously seeing $34.5 billion to $34.7 billion, beating estimates of $34.66 billion. “Against more cautious investor sentiment, CRM's 2Q results were solid with upside to most key metrics, and a more significant raise to annual growth and profitability targets”, per a Citigroup analyst, as quoted on Yahoo.
Raymond James analyst Brian Peterson said “we are also pleased to see impressive growth across clouds, with Data Cloud remaining the company’s quickest growing at +16% y/y”, as quoted on Yahoo. In any case, the stock is riding the AI hype this year with year-to-date gains of 61%.
"We are very thirsty to make sure that Salesforce is the No. 1 AI CRM, and we have done a lot organically to do that in the last six months," Salesforce CEO Marc Benioff said to analysts on the company's earnings call, quoted on Yahoo.
Salesforce-Heavy ETFs in Focus
Salesforce has a Zacks Rank #2 (Buy) and an upbeat Growth score of “A”. However, the stock has a moderate Value score of “C” and a downbeat Momentum score of “D.” Hence, if investors want to tap Salesforce’s success in the basket form, they may play the below-mentioned ETFs.
iShares Expanded Tech-Software Sector ETF (IGV - Free Report) – Salesforce has 7.95% Exposure
The underlying S&P North American Expanded Technology Software Index comprises of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries. The fund charges 41 bps in fees.
Invesco NASDAQ Internet ETF (PNQI - Free Report) – Salesforce has 7.02% Exposure
The underlying Nasdaq CTA Internet Index is a modified market-capitalization weighted index designed to track the performance of the largest & most liquid U.S.-listed companies engaged in internet-related businesses & that are listed on one of the three major U.S. stock exchanges. The fund charges 60 bps in fees.
iShares U.S. Tech Independence Focused ETF (IETC - Free Report) – Salesforce has 5.54% Exposure
The iShares U.S. Tech Independence Focused ETF seeks to provide access to U.S. companies with technology exposure while targeting increased exposure to U.S. firms with a greater proportion of technological capabilities, revenues, and production in the U.S. and select global markets. The fund charges 18 bps in fees.
Fidelity Disruptive Technology ETF (FDTX - Free Report) – Salesforce has 5.06% Exposure
The fund looks to attain long-term growth of capital. Normally investing at least 80% of assets in securities of disruptive technology companies. Fidelity's disruptive strategies seek to identify innovative developments that could signal new directions for delivering products and services to customers. The fund charges 50 bps in fees.