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Salesforce (CRM) Stock Surges Over 26% as Company Recorded Better than Expected Revenue Results

American cloud-based software company Salesforce.com Inc (NYSE: CRM) stock surged to a record high yesterday to close the day trading at $272.32. Having added around $56.27 during the day, the company recorded its best one-day performance ever. Notably, the shares reached their all-time high at around $277.97 during the day. The rise is largely attributed to the better than expected fiscal 2021 second-quarter results, amid the ongoing global coronavirus pandemic.

However, the shares had dropped around 1.19% in the pre-market to trade around $269.09. Salesforce cloud-based business has seen a sharp increase in demand especially in the first half of the year as more companies push towards remote business operations.

Details of Salesforce Fiscal 2021 Q2 Results

According to the company’s fiscal 2021 second-quarter results, it recorded a revenue climb of 29% year over year to $5.15 billion. Additionally, its revenue in regards to sales, service, marketing/commerce, and platform divisions jumped by 13%, 20%, 21%, and 66%, respectively.

Notably, Salesforce’s adjusted earnings per share jumped by 118% to $1.44. This came in even after excluding a $0.58 gain on its strategic investments, whereby its adjusted EPS still rose with more than 30%.

CEO Marc Benioff said in a press release:

“It’s humbling to have had one of the best quarters in Salesforce’s history against the backdrop of multiple crises seriously affecting our communities around the world”.

He further continued to say that the world should adjust accordingly to the ongoing coronavirus pandemic as things might never be the same again.

“We all want to get back to how things were, but the reality is that’s never going to happen,” said Benioff. “We’re in a new world. We’re in an all-digital world, with the work digitally, we’re living digitally, we’re educating digitally.”

Analysts Call on Salesforce (CRM) Stock

With the company experiencing a sharp uptick in customer base around the world, a huge number of analysts anticipates the shares to continue rising in the coming months.

Of the 42 analysts who cover Salesforce stock, around 38 of them gave buy or overweight ratings. Notably, three of them have hold ratings, whereas one has a sell rating. Of the 38 analysts, 27 of them hiked their price targets for an average $259.63, up from an average target price of $212.81 before earnings, according to FactSet data. Prior to that, at least nine analysts had hiked their price targets on the stock ahead of earnings.

Salesforce (CRM) Stock Surges Over 26% as Company Recorded Better than Expected Revenue Results