CRM stock price followed a bearish pattern after the company cut hundreds of sales and marketing jobs. Salesforce Inc (NYSE:CRM) is a cloud-based software company which designs and develops cloud-based enterprise software for customer relationship management. This week, CRM stock price declined nearly 8% following reports that it has eliminated hundreds of sales and marketing employees as part of its previously announced plan to cut 10% of its workforce.
According to Yahoo Finance, Salesforce is facing pressure from activist investors. After the Q4 earnings results, Salesforce beat the key revenue estimates and guided to profitability gains. Meanwhile, the activists seemed to circle the customer retention software firm.
CRM Stock Price Analysis
CRM stock price fell nearly 7.92% in one week, while on the last day of trading, CRM stock closed at $173.18 with a 3.10% decline. On March 6th, the stock opened at $185.00, then moved up and recorded a 1 week high at $188.78 on the same day. The next day, the stock started declining in its trading price and traded at nearly $183.
On March 9th, CRM stock started dropping from its opening price of $183.26. The stock price lost nearly $10, closing at $173.18 on the last trading day. The fall in banking stocks reportedly led to the stock price dipping down.
According to Tradingview, the price target of CRM stock is $217.66. The analysts are offering 1-year price forecasts for Salesforce, with a maximum estimate of $320.00 and a minimum estimate of $75.00.
Besides Salesforce, the other tech stocks such as Technology Select Sector SPDR Fund (XLK) slid by 1.76%, MangoDB (MDB) by 7.39%, and Asana Inc (ASAN) plunged by almost 9.54% on their last day of trading.
Salesforce Inc has a market cap of $178.72 billion, while its total revenue in Q4 2022 was $8.38 billion. It was 6.98% higher as compared to the previous quarter. Its earnings for the same period are $1.68, whereas the estimation was $1.36, which accounts for a 23.33% surprise. The company noted a gross profit of $5.62 billion. Its price-to-sales ratio is 5.61, and it has an Enterprise Value to EBITDA ratio of 26.29.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/11/crm-stock-price-decline-as-salesforce-announces-more-layoffs/