CRM will report third-quarter earnings this Wednesday
Salesforce Inc (NYSE:CRM) stock was last seen up 1.5% to trade at $234.08, brushing off a price-target cut to $300 from $315. The software giant is buzzing after Adobe Analytics reported Black Friday sales rose 9% from a year ago, and Cyber Monday projects to top 2024 by 6.3%.
Salesforce's third-quarter earnings is coming up after the close on Wednesday, Dec. 3, with analysts anticipating profits of $2.86 per share on revenue of $10.27 billion. The stock hasn't had the best earnings history in recent quarters, finishing its last three post-earnings sessions lower, including a 4.9% drop in September. The options pits are pricing in an 11.6% swing for Thursday, regardless of direction, this time around, which is larger than the 7% move the stock has averaged over the last eight quarters.
CRM has rallied off its Nov. 21 52-week low of $221.96, but is still nursing a 30% year-to-date deficit. The $260 level has been a notable line of pressure in recent weeks after providing support over the summer.
Options traders are still betting on a rebound, however (which also means there's not much pessimism to unwind). CRM's 50-day call/put volume ratio of 2.42 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 97% of readings from the past year.