Salesforce advances to its fifth consecutive session with profits

• Salesforce shares have risen since 1,000 new hires were announced.
• The hires are intended to help sell its new AI product called Agentforce.
• Stifel predicts the products segment could be a “several billion” opportunity.
• The daily chart shows that CRM stock is completing a bullish technical scenario called the “Golden Cross.”

Salesforce (CRM) Stock They are having their best recovery of the year. Since closing at $291.37 on October 31, CRM stock has advanced 17.3% so far in November. Shares of the software giant are up another 1.7% Tuesday morning, which could make this the fifth consecutive day of gains.

He Dow Jones Industrial Average (DJIA)of which Salesforce is a member, started the week on a strong note, closing up 0.69% on Monday, well ahead of its peers — the NASDAQ and the S&P 500 — which only gained marginally. At the start of trading on Tuesday, the DJIA was again leading the pack, rising 0.15%, but then reversed at midday and is down more than 0.5% at the time of writing.

Salesforce Stock News

One clear reason for moving forward is Donald Trump’s US presidential election victory last week, which has sent ripples through Wall Street as managers expect the administration to ignore regulations and oversight duties. and enable many more mergers and acquisitions.

Software stocks have been ignored for much of 2024 as Wall Street had a bleak view of the sector’s growth prospects, but that view appears to be changing under a Trump presidency that begins in late January 2025.

As recently as September, Oppenheimer Asset Management was telling people to sell Salesforce, as the stock had moved below its 200-day Simple Moving Average (SMA). However, after the election, banks such as UBS and Citi have been telling clients that software could outperform semiconductors as it will not face headwinds from export controls expected under a Trump administration.

Salesforce has been sailing much higher since Friday, when the company announced it would hire 1,000 new employees to market its new generative AI platform called Agentforce.

Quietly launched in late October, the new platform allows companies to create “autonomous AI agents.” The company claims that these digital agents can carry out customer service, sales, marketing and even healthcare tasks, reducing the number of employees and therefore costs.

“Go beyond co-pilots and deploy unlimited AI agents that operate across your business 24/7, from resolving cases to qualifying leads,” Salesforce said in a post on the platform. social networks X (formerly Twitter) after the initial launch.

The hiring announcement is large enough that the market is predicting a vast new growing revenue segment in 2025, which in turn has boosted the stock. Stifel analysts said they were still waiting for more details, but that Agentforce could become a multibillion-dollar operation. However, it is believed that both Microsoft (MSFT) as ServiceNow (NOW) They are working on similar products.

Salesforce has partnered with Nvidia (NVDA) and the Google Cloud segment of Alphabet (GOOGL) to optimize these AI agents.

Salesforce Stock Forecast

Since last Thursday, Salesforce stock has easily broken through the resistance of the previous high range near $318 in March. This type of recovery typically has additional movements, so it will be interesting to see where the recovery decides to stop. But Tuesday brought another all-time high for CRM stock.

After falling below the 200-day SMA in early July, the 50-day SMA crossed above it again in early November. This is a bullish Golden Cross signal and typically indicates to traders that a long-term uptrend is in process. Everything looks positive for CRM stock right now, so it’s not surprising to see more retail operators joining the fray.

Support currently lies with its SMA between $274 and $281, but this range is likely to continue rising in the final weeks of the year. Traders will notice that the Relative Strength Index (RSI) is quite overbought above 83 and should expect a momentary pullback which will offer another entry point.

CRM Stock Daily Chart