Trade Salesforce.com Inc. Stocks
Salesforce.com Inc. (NYSE: CRM) often referred to as Salesforce, is a cloud-based software company. Headquarters in San Francisco, CA, USA, it was started during the dot-com book in 1999 by a group of former Oracle employees as a software as a service (SaaS) firm. The founding team members wrote the original CRM software and began launching it to customers from September through November of 1999. Its core product is a customer relationship management (CRM) suite, and it sells complimentary software focused on application development, analytics, automation, marketing, and customer service.
The Current State of Salesforce
In January 2020 the company has expanded its efforts to include artificial intelligence and Internet of Things (IoT) technologies, as well as social and mobile platforms. Salesforce products have been designed to integrate with third-party platforms and enterprise applications. As a cloud-based product, the services provided by Salesforce are predominantly delivered via internet browsers or through mobile apps.
The Salesforce Customer Success Platform is a portfolio of service offerings providing sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, IoT integration, collaborative productivity tools and its professional cloud services. The cloud service offerings include:
- Sales Cloud
- Service Cloud
- Marketing Cloud
- Commerce Cloud
- Community Cloud
- Analytics Cloud
- Salesforce Quip
- Salesforce Platform.
Fortune magazine ranked Salesforce as the best company to work for in their 2018 edition of the 100 Best Companies to Work For, and ranked the company second in the 2019 edition of the same rankings.
Salesforce Stocks Price History
Salesforce started trading as a public company on June 23, 2004, with a listing on the New York Stock Exchange. The IPO price of Salesforce stocks was $11, and on the first day of trading the stock rose to $17.20 a share for a one day gain of 56.4%. At the time the IPO was considered a test of a new business model, one which should seem familiar now. It’s the subscription-based model, and after the success of pioneers like Salesforce, nearly every company has tried to incorporate some form of subscription-based sales or services.
Since then, barring the accessional pullback, the stock has continued to trade steadily higher, never suffering an extended downtrend.
Salesforce Stock and the Global Financial Crisis
The first pullback suffered by Salesforce stock was not its own doing, but was in response to the global financial crisis. Shares hit a high of $18.80 (slit-adjusted) in June 2008, but fell to a low of $5.20 a share by November 2008. That drop set the stock up for its next leg higher, which took the stock to a high of $37.81 by December 2010 for a more than 600% return in two years.
The stock was basically flat over the next two years, but by December 2012 it had begun rising again alongside the broader market. By September 2018 Salesforce stocks would be trading at $161.19 a share. Its trading activity became more volatile from that point, and it suffered a few sharp drops over the next 15 months, but as of January 2020 it is trading at an all-time high near $185 a share.
Salesforce Stocks Trading Ideas
Salesforce stocks have spent much of their 15-year history trending higher, so traders interested in having Salesforce in their portfolio may be considering dips before stepping in. After trading sideways for considerable amounts of time, there are two scenarios that could present the opportunity to buy Salesforce stocks on a dip.
The first is another acquisition. It was the acquisition of MuleSoft and tableau that, for example, caused shares to turn sideways back in 2019. Even though Salesforce acquisitions tend to work out in the long-run investors seem not to like acquisitions and often sell the stock in response. Another big acquisition to be announced could lead the stock to drop.
Another scenario that could cause a dip in shares would be some type of macro-economic crisis. No one wants anything like that, and in any case a macro-economic crisis could create buying opportunities all over the place.
For short-term traders pullbacks of a day or two should be enough to create a short-term buying opportunity.
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Salesforce Stock FAQ
- Why should I trade Salesforce.com shares?
Salesforce.com is a leader in cloud-based customer management software. As a leader in its space, and with the immense interest in anything cloud-based, Salesforce should be on every trader’s radar. Shares have seen a massive increase in trading volume in 2020, with some days seeing volumes of 20 million shares or more changing hands. Even with that large liquidity shares can be quite volatile at times, and recent price action has seen that volatility increasing. Traders should be able to take advantage of this volatility, particularly the short-term scalpers and day traders.
- Is Salesforce.com the best enterprise software stock for trading?
With the use and applications of the cloud increasing dramatically there are many new and growing enterprise software firms delivering their products from the cloud. And yet Salesforce.com has become one of the most popular for stock traders. That doesn’t necessarily mean that it’s the best, but there is a good deal of opportunity in trading Salesforce.com shares on a regular basis. Large liquidity and daily volatility in the stock recommend it as a favourite for short-term traders, and that should remain the case until market dynamics shift away from favouring technology shares.
- What’s the best strategy for trading Salesforce.com shares?
As of late 2020 shares of Salesforce.com have become quite volatile, providing the perfect opportunity for scalpers and day traders to profit from strategies that involve trading off of overbought and oversold levels. Watching for breakouts at this time could also prove potentially profitable as the increased volatility indicates the stock could soon make a break higher to add to its rally, or lower as traders rotate out of this stock and into something new. Given the increased volatility in the stock it would also be wise to maintain solid risk management in case of unexpected price action.