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Stock Spotlight Designer 5/30/2024

Custom Instruction: Concerned Investor

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About Salesforce.com (CRM)

Salesforce, Inc. is a global leader in Customer Relationship Management (CRM) technology, connecting companies with their customers through a variety of services. Founded in 1999 and headquartered in San Francisco, California, Salesforce offers a comprehensive suite of tools designed to enhance sales, customer service, marketing, commerce, analytics, and more. The company's platform supports businesses of all sizes and industries in building custom workflows and applications.

Key Metrics:

  • Sector: Information Technology
  • Industry: Software
  • Market Capitalization: $262.073 billion
  • EBITDA: $9.221 billion
  • P/E Ratio (TTM): 64.86
  • PEG Ratio: 1.5771
  • Wall Street Target Price: $336.10
  • Book Value: $61.427
  • Dividend Yield: 0.59%
  • Earnings Per Share (EPS): $4.16
  • Revenue (TTM): $34.857 billion
  • Quarterly Revenue Growth YoY: 10.80%
  • Gross Profit (TTM): $22.992 billion
  • 52-Week High: $318.30
  • 52-Week Low: $193.43
  • Beta: 1.30

Risk

Investing in Salesforce.com (CRM) comes with a set of risks that potential investors should carefully consider. Over the past year, the stock has shown a medium risk level with an annualized standard deviation of 26.69%, compared to the benchmark S&P 500's 11.53%. This indicates higher volatility, meaning the stock price can experience significant fluctuations.

The expected volatility for Salesforce.com is 36.08%, which is notably higher than the S&P 500's 17.33%. This suggests that while Salesforce has the potential for substantial gains, it also carries a higher risk of loss. The maximum drawdown over the past year was -16.26%, compared to -10% for the S&P 500, highlighting the potential for significant price drops.

Furthermore, the Value at Risk (VaR) at a 99% confidence level estimates a maximum single-day loss of -5.80%, compared to -3.06% for the benchmark. While the potential upside in a single day is estimated at 6.63%, compared to the benchmark's 2.61%, investors should weigh these figures against their risk tolerance and investment goals.

 

News Sentiment Analysis

The sentiment of news articles can significantly influence investor perception and stock performance. For Salesforce.com (CRM), news sentiment analysis from EODHistoricalData.com shows a generally positive outlook over recent periods.

The average sentiment score for daily news on May 29, 2024, was 0.76 based on 17 articles, indicating a positive sentiment. Over the last week, from May 23 to May 30, the average sentiment score was slightly higher at 0.79 with 29 articles analyzed.

Looking at a broader timeframe, the average sentiment score over the last four weeks (from May 2 to May 30) was even more positive at 0.86, based on 86 articles. The scoring system ranges from -1 for negative sentiment to +1 for positive sentiment, with gaps indicating news stories not analyzed by our data provider.

Salesforce is expected to announce its earnings on May 30, which may impact investor sentiment and affect stock prices.