Salesforce Stock up 2% on Strong Earnings
Salesforce beat Nvidia on the stock market today after both companies posted earnings for the quarter.
Quick overview
- Salesforce's stock rose 2.21% after a strong quarterly earnings report, bringing in $11.2 billion in revenue, a 12% increase from the previous year.
- The company projects $11.5 billion in revenue for the first fiscal quarter of 2027, indicating positive growth expectations.
- While both Salesforce and Nvidia reported strong earnings, Salesforce's stock increased due to a perception of being less risky in the AI job disruption debate.
- Salesforce's stock is recovering from previous losses, currently priced at $196 per share, but faces challenges from broader market fears regarding AI's impact on employment.
Salesforce (CRM) is outperforming Nvidia (NVDA) in one key area right now- stock performance, with the customer relationship management software giant gaining 2.21% on Thursday.
After an excellent quarterly earnings report, Salesforce enjoyed a stock bump Thursday. The company brought in $11.2 billion in fourth quarter revenue, which is an increase of 12% from the previous year. They project that they will earn around $11.5 billion for 2027’s first fiscal quarter.
Salesforce offers agentic AI services that do more than just respond, according to their marketing materials. They are not a direct rival to Nvidia but offer services that use Nvidia components in many instances.
Salesforce Puts in a Good Showing for Embattled Ai Industry
Both Salesforce and Nvidia demonstrated this week that AI companies can still earn incredible revenue even at this late stage in AI development. However, even though both companies outperformed and beat expectations this quarter, Nvidia’s stock dropped while Salesforce’s rose.
The difference is partly the public perception of how much these companies are responsible for what many fear is an upcoming major disruption of the workforce. Consumers are afraid that tech giants like Nvidia will be partially involved in bringing AI into a prominent place in businesses so that many jobs are disrupted or even eliminated.
Salesforce is certainly seen as less of a risk in this scenario since its software aims to work with human employees and maximize their potential. Nvidia, on the other hand, is creating chips that are powerful enough to do the jobs of many personnel. So, as Salesforce stock climbed this week, Nvidia’s dropped, and the market is worried about the future of AI and its impact on employment.
At $196 per share, Salesforce stock is almost back where it was a month ago, showing strong upward progress recently but having to fight to recover some losses. The 90-day view is even more disappointing, with the stock price falling from $232. AI market fears are likely stifling stock growth for Salesforce as they are for many other AI-related companies, but there is a short uptrend at work at the moment. If Salesforce can dispel worries for their company in particular and keep their revenue elevated, they may be able to pull a bull run out of their hats.
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