Salesforce Inc. (CRM) is set to release its quarterly earnings report on Wednesday, once the markets have closed. We are going to talk about what you can expect from this report and its effect on Salesforce stock.

Salesforce makes software for businesses that helps them with their customer relationships. For the last quarter, the company was able to meet expectations and gain an increase in revenue of about 11% from the previous year for that quarter. They earned $9.29 billion in revenue for the quarter. They expect slightly lower earnings for the quarter they are about to report on.

The expectation is that they will earn about $9.15 billion this quarter, which would mean a 10.9% increase and an earnings per share of $2.37. This level of growth should help their stock move quickly.

Should You Invest in Salesforce?

We already have some details on their earnings for the quarter, with their Freshworks division showing revenue increases of 19.9%. The Hubspot division is also showing a revenue gain of 23.1% from the previous year, which is ahead of analysts’ expectations.

However, Salesforce Inc.’s stock has been dropping for the past few days. That could indicate a lack of investor confidence in the stock. The stock is up overall for the year, but it has lost a lot of ground since it climbed to $316 per share at the beginning of March. The current price is $268 per share and dropping.

Currently, CRM stock is down 1.48%, but that could turn around as we get closer to the earnings report and investors start to look at more of the data coming out about the company.

Right now, this is looking like an undervalued stock that could turn around in a couple of days, and  traders may regret sleeping on it once it does.