|Bid||165.34 x 800|
|Ask||165.56 x 4000|
|Day's Range||163.64 - 166.49|
|52 Week Range||111.34 - 166.99|
|Beta (3Y Monthly)||1.06|
|PE Ratio (TTM)||114.87|
|Earnings Date||May 28, 2019 - Jun 3, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||181.41|
Salesforce gave first quarter guidance that lagged consensus estimates, while Oracle reported weak sales growth, with a previously expected pick-up in the second half of fiscal 2019 not materializing. Both stocks wobbled following the release of their financial results, with Oracle falling by as much as 3% and Salesforce dipping 5% intraday. Salesforce.com was born a cloud service provider, as reflected in its "no (legacy) software" mantra.
SAP's resilient Cloud and Software business, act as staple growth drivers. Impressive growth in S/4HANA and other Cloud initiatives are other positives.
Investors love Ulta Beauty (NASDAQ:ULTA) at the moment. Ulta stock hit an all-time high on Friday, after a blowout fiscal fourth-quarter earnings report. The 8%+ gain of Ulta stock after the company's earnings were part of a much larger pattern: Ulta Beauty stock has risen 251% in the last five years.Source: Shutterstock That's an impressive performance in any sector. In a retail industry that's had few winners in recent years, it's downright extraordinary. And Ulta stock has earned every cent of its gains. It's established a hugely successful "omnichannel" model. The company's loyalty program is a massive success. As a result, its same-store sales are the envy of the industry. * 5 Cloud Stocks to Help Your Portfolio Fly ULTA has a hugely attractive business. Indeed, I've recommended Ulta Beauty stock on this site several times, most recently in late August. But with Ulta stock soaring after last week's Q4 report, it's difficult to be quite as aggressive at these levels. Ulta stock definitely shouldn't be cheap, but at this price, it's starting to look expensive.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Has Ulta's Performance Really Been That Good?It looks like Ulta Beauty stock easily merits a huge earnings multiple. ULTA's earnings per share, excluding some items, rose 33% in fiscal 2018, which ended in January 2019. Brick-and-mortar retailers simply aren't posting that type of growth these days. So a price-earnings multiple of 25 or 30 for Ulta stock hardly seems out of line.But looking a little closer, we can see that the company's profit growth isn't quite as impressive as its headline numbers suggest. ULTA's EPS got big boosts from tax reform and share buybacks in FY18.The company's pre-tax numbers indicate that its business is doing well, but that its business is not quite as good as its headline EPS figures suggest. The company's operating profit margins actually fell 0.6 percentage points in fiscal 2018, and ULTA only expects them to rebound 0.1-0.2 percentage points in FY19.Ulta is making some investments in its business, which explains some of the pressure on its near-term profits. But as even as its sales performance remains torrid, that top-line growth isn't as profitable as it could or possibly should be. Part of that simply is a retail problem: incremental margins aren't the same as they are in tech. That's the key reason why ULTA isn't going to get the earnings multiple that tech leader like Salesforce.com (NYSE:CRM) obtain.Indeed, in FY18, ULTA's operating profit increased less than 9%. Its FY19 guidance suggests that its growth this year will be closer to 12%-14%. As a result, ULTA expects its EPS to climb 17%-18% this year, thank to its buybacks of Ulta stock. But that's notably lower than the 30%+ EPS growth it posted last year. Is the Valuation of Ulta Stock Too High?Meanwhile, investors truly are paying up for Ulta stock. ULTA trades at nearly 27 times the high end of its FY19 EPS guidance. The only other brick-and-mortar retailers getting similar multiples at the moment are Five Below (NASDAQ:FIVE) and Lululemon Athletica (NASDAQ:LULU).And it's worth noting that both FIVE and LULU seem to have hit a ceiling. Both companies posted blowout earnings toward the end of the summer (Lululemon in late August, Five Below in early September). Both stocks hit all-time highs soon after. From those highs, FIVE is down 14%, and LULU has fallen 13%.It's not impossible that well see something similar happen to Ulta stock. The company's blowout- earnings release led to a series of upgrades by analysts, as Benzinga pointed out. The three bullish analysts moved their price targets to $350, $365, and $380. The highest of those targets suggests about 11% upside in Ulta stock from its current levels.In this market, 27 times forward earnings for mid-teens growth isn't bad. But it's not exactly a steal, either. Again, I have recommended Ulta stock in the past , but the last time I touted it was when it was trading for $230 per share. Elsewhere on this site, Luke Lango accurately predicted that a new line from Kylie Jenner would boost the stock and assigned a price target of $300 to Ulta stock. In that context, $342 seems to be asking a lot. Don't Short Ulta Stock, But Consider Taking ProfitsNone of this means that Ulta Beauty stock should be shorted. A well-run, growing company with room for expansion is the exact opposite of a good short target. Indeed, at at a time when most brick-and-mortar retailers have at least reasonable short interest, ULTA largely has been left alone.But valuation matters , even in what has again become a bull market. And I question whether investors really are going to pay 30 times earnings for Ulta stock. The sector's recent history shows that investors are hesitant to give even the best retailers that valuation.Ulta Beauty still is a wonderful company. Ulta stock, however, simply isn't a bargain anymore.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Ulta Stock Might Need to Settle Down appeared first on InvestorPlace.
Every once in a while we get a company that wows investors. Salesforce.com (NYSE:CRM) is one of them and Wall Street is in awe of it. The proof is that CRM stock's momentum represents risk appetite in the whole market. It rallies fast and yes, it falls fast, but almost never to any fault of its own.Source: Shutterstock On Mar. 5, when traders were selling out of CRM stock, I wrote about how wrong they were to do that. It has since recovered and is back to near all-time highs. And yesterday, CRM stock was leading the charge before the China headline hit the ticker tape to cause a market wide sell off and stall the run.The results show that for the long term, owning Salesforce stock is a winning proposition. Year-to-date, CRM is up 20% leading all indices. It is up 31% in 12 months and almost 200% in five years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo those wanting to invest in CRM for the long term should not worry about timing a perfect entry into CRM stock. It's a momentum stock, so it almost never leaves the door open for a clear entry point. The idea here is to buy high and sell higher much later. * 5 of the Best Stocks to Buy Under $10 Fundamentally, Salesforce stock is not cheap since it sells at a three-digit price-to-earnings ratio. It is more expensive than Amazon (NASDAQ:AMZN), which has been the poster child of expensive stocks. But when a company delivers hyper-growth as CRM and AMZN do, investors should award them a higher valuation. They are supposed to overspend, so they can continue to deliver outstanding growth. How to Approach CRM Stock NowInvestors incorrectly sold CRM stock on softer guidance this month. But I listened to its high profile leader Mr. Benioff, who emphatically said that they will continue to set records on Wall Street, and I believe him.For the short term, momentum stocks like CRM make for good trading vehicles because they move fast in both directions. The key to success here is finding the levels that matter. For that, I use the lower time frame charts.At the end of January, CRM broke out of the $153 neckline and since then, it continues to trade inside a defined range. The breakout neckline was successfully tested twice already so it is short-term support. Anytime Salesforce stock falls to it, I can buy it for a swing trade with tight stops at $5 and $9 below it.There is another mini support level at $159 per share. So if I am long already into a swing trade, I could use this as a stopping point depending on my trade intentions. I expect it to hold as natural support provided the geopolitical headlines or the Fed today don't ruin the run. Click to EnlargeConversely, if the CRM bulls can breakout out of $166 per share they run into open space where there is virtually no resistance. The bears will have a hard time to stop the rally. The target of the breakout is really open to interpretation, so then I'd set trailing stops to lock in the profits and enjoy the ride. Those who know options can then sell calls against their stock to generate synthetic dividends.The bottom line, CRM is an incredible success story for the long term and it presents many short-term trading opportunities. Today, it will also likely represents a leading indicator to the market-wide risk appetite. If CRM is getting bid, then the major indices will also be in the hands of the bulls. Shorting CRM stock long term is the equivalent of shorting markets in general. For now, this will not be my approach to the stock.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Why Salesforces Stock Continues to Impress Most Investors appeared first on InvestorPlace.
SAN FRANCISCO, March 20, 2019 /PRNewswire/ -- Salesforce.org, the social enterprise of Salesforce (CRM), the global leader in CRM, is bringing the power of Salesforce Einstein Artificial Intelligence to empower nonprofits and higher education institutions of all sizes, enabling them to deepen engagement with their constituents and students, make smarter decisions and operate more efficiently. During AI for Good Week, Salesforce.org will showcase how innovative organizations including College Forward, Reading Partners, Arizona State University and Taylor University are using Einstein to accelerate their impact. Built on the Salesforce Platform, Salesforce.org's industry-specific CRM solutions Nonprofit Cloud and Education Cloud are infused with Einstein.
When Salesforce bought Quip in 2016 for $750 million, it was fair to wonderwhat it planned to do with it
"Most of the spots were reserved almost immediately," said a Salesforce spokesman. "When we designed the floor, we always wanted to include the community."
[Editor's Note: This story was previously published in February 2019. It has since been updated and republished.]Data is the future, and that means big-data stocks are building the future.There really isn't any other way of looking at it. The mainstream emergence of the Internet of Things (IoT), coupled with the digitization of essentially all processes, has caused a surge in the amount of data running around the world. All that data is being used by small and large companies alike to optimize operations. This includes everything from gleaning insights from the data so as to make the best product to leverage that data to deliver advertising solutions to the right market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom this perspective, data is the new currency. And the value of that currency is only growing as the data revolution gains steam. * Top 7 Service Sector Stocks That Will Pay You to Own Them With that in mind, here is a list of four big-data stocks that have broad exposure to the data revolution, and should be big winners in a multiyear window. Alphabet (GOOG, GOOGL)The first company on this list is probably the most underrated big data stock in the world.As the world's premier digital search engine that processes billions of searches every day, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has the largest consumer data-set in the world. Throw in all the data Google gathers from Google Chrome, YouTube and its smart home products, and the competition isn't even close.And this enormous data-set is presently dramatically undervalued.GOOG stock trades at just 22 times forward earnings. That really isn't that big of a multiple, especially when you consider just how much firepower the company has in Big Data. As the company with the largest consumer data-set in the world, Google is set-up to deliver the world's most robust solutions in AI, automation and personalization.This is already happening. Google Duplex -- Google's AI system that sounds like a human and can respond impressively well in real-time conversation -- is miles above the competition on the AI front. Google Home is doing well in the smart-home category that Amazon (NASDAQ:AMZN) initially dominated. And Waymo, Google's self-driving unit, is the leader in automated driving, and will likely launch multiple self-driving ride-hailing services soon.All those markets (AI, smart home and self-driving) are presently in their infancy. They have huge growth potential over the next several years. Google is at the forefront of each of those markets, and thanks to its Big Data advantage, promises to be a big player in each of the those markets over the next several years.That means Google has huge growth potential over the next several years. Those huge growth prospects simply aren't priced in at 22 times forward earnings. As such, GOOG stock looks likes a great multiyear investment among big-data stocks. Facebook (FB)If Google is number one in the Big Data world, Facebook (NADSAQ:FB) is number two.Although no one really comes close to rivaling Google in terms of consumer data-set size, Facebook is no slouch. Considering the company collects data on an estimated 2.7 billion users each month, Facebook promises to have the second-biggest consumer data-set in the world into the foreseeable future.Much like GOOG, FB stock is hugely undervalued considering the firepower this massive data-set gives the company over the next several years.Unlike Google, Facebook is focusing the use-case of the data more directly at targeted advertising. And it's working. Facebook, despite being the second-largest digital advertising player in the world, grew advertising revenues by 30% last quarter.That growth won't slow anytime soon. Instagram's revenues were just $4 billion in 2017, which is rather anemic for a billion users, so the Instagram ad ramp will last for a lot longer. Meanwhile, Messenger and WhatsApp are just starting their advertising ramps, and those should last for a lot longer.Plus, Facebook is making a big plunge into the smart-home market. Just look at Google to see why Facebook could be a big winner in this space. Google leveraged its massive consumer-data set to create an above-average smart home product. Facebook should be able to do the same, considering the company has a consumer data-set that is second only to Google. * Top 7 Service Sector Stocks That Will Pay You to Own Them All together, Facebook has huge growth potential over the next several years thanks to its robust data-set. But FB stock trades at just 18 times forward earnings. That is an anemic multiple for a company with this much growth potential. Consequently, Facebook is one of the best big-data stocks to buy here and now. Nvidia (NVDA)There are lots of companies out there partaking in the Big Data revolution. From cloud data-center operators to automated tech companies to targeted advertisers, everyone wants a piece of the data revolution pie.And almost all of them use products from Nvidia (NASDAQ:NVDA) to do so.NVDA makes the stuff that powers the data revolution. If companies like Facebook and Google are the drivers, then NVDA is the car. Granted, there are lots of cars out there which Big Data companies could use. But the best car is NVDA, and that is why this company continues to crush it in high-end computing markets like data-centers, AI and automation.Owing to its nature as a supplier of the parts that fuel the data revolution, NVDA has broad exposure to all things Big Data. If cloud data-centers take off, NVDA takes off, too. By the same logic, if self-driving or automated technology takes off, Nvidia will profit.This diverse exposure somewhat mitigates the risk of betting on a single part of the Big Data revolution materializing. Instead, a bet on NVDA is a bet on the whole data revolution.Meanwhile, valuation isn't that big of a concern for this company. NVDA stock trades at 24 times forward earnings. That really isn't all that big of a multiple considering the company is a pure play on the whole data revolution, and it is absolutely crushing its competition. As such, NVDA stock looks like one of the best big-data stocks to own for the next several years. Salesforce (CRM)A discussion of big data stocks would be incomplete without including Salesforce (NYSE:CRM).Salesforce is truly at the heart of the cloud and data revolutions. CRM leverages data and analytics to deliver robust cloud solutions to enterprises that want data-driven insights on their customers. In this sense, the company takes data and turns it into insights via cloud solutions. That promises to be one of the most valuable processes in a world defined by Big Data.Consequently, CRM promises to be immersed in a big growth industry over the next several years. More than that, CRM promises to be the leader in that big-growth industry over the next several years.CRM has faced a lot of competition over the past several years. But none of that competition has been sufficient to knock CRM off course. Despite rising competitive threats and tougher laps, revenue growth at Salesforce has hardly slowed over the past several years. Back in 2014, revenues grew by 33%. In fiscal 2018, revenues grew by 25%. Last quarter, they rose by 26%. And this year, revenues are expected to rise by about 23%.In other words, revenue growth has remained resilient above 20%. That is impressive, and speaks to the strength of CRM's core offerings.This strength should last. So should strength throughout the whole Big Data market. As such, CRM stock should head higher in a multiyear window as the value of data globally explodes higher.Valuation today is a slight concern. A 48-times forward multiple for CRM stock is big, no matter what type of stock you are talking about. * Top 7 Service Sector Stocks That Will Pay You to Own Them But in a longer-term window, the robust secular growth narrative supporting CRM will allow it to grow into its valuation and ultimately head higher.As of this writing, Luke Lango was long GOOG, AMZN and FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post 4 Big-Data Stocks for the Future of Everything appeared first on InvestorPlace.
An object in motion stays in motion until acted upon by an unbalanced forced. Sir Isaac Newton posited that in the 1600's as the first law of motion, and it has since become a fundamental building block of physics.As it happens, Newton's first law of motion also has applications to the stock market. Traders just don't call it the first law of motion. They call it momentum. But, the idea is broadly similar. Stocks that are on an uptrend/downtrend, will stay on an uptrend/downtrend, until some external catalyst reverses the direction of the stock.As such, when looking for stock market winners, it is appropriate to look at the basket of stocks which are already winners. That is, look for stocks that are already on an uptrend, and have a track record of beating the market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen doing so, there are two important things to remember to mitigate risk: longer is better, and bigger is better. The longer the stock's track record of market out-performance, the safer it is to assume the stock will keep outperforming for the foreseeable future. Also, the bigger the stock's market cap, the safer the stock is given its presumably already dominant positioning.With that in mind, I've come up with a list of seven "invincible stocks" that are leading this bull market higher. These are stocks that have consistently generated huge alpha over the past decade, and which have become titans in their industry today. As such, these stocks are proven winners that project as winners for the foreseeable future, too. * The 10 Best Stocks to Buy for the Bull Market's Anniversary Which stocks belong to this list? Let's take a look. Amazon (AMZN)Source: Shutterstock Past Decade Performance (Alpha): 2,360% (over 2,000%)Market Cap: $830 billionPerhaps the godfather of invincible stocks is e-commerce and cloud giant Amazon (NASDAQ:AMZN). There was a point in time where no one really knew if the Amazon e-commerce business model was going to work. That point in time was long ago. Over the past decade, Amazon has increasingly proven the effectiveness of its e-commerce business model, while adding multiple other verticals, leading to Amazon stock generating over 2,000 points of alpha during that stretch.This stock is only going higher. The theme of Amazon over the past decade has been robust revenue growth and rapid market share expansion. Over the next decade, the theme will be robust profit growth and margin expansion, thanks to growth in higher-margin businesses like digital ads and cloud. Both of those themes are really positive. One has already done its work and generated huge alpha. The next is about to.Long story short, Amazon stock is one to buy and hold for the long run. Netflix (NFLX)Source: Vivian D Nguyen via Flickr (Modified)Past Decade Performance (Alpha): 6,280% (over 6,000%)Market Cap: $150 billionRight next to Amazon in the Mount Rushmore for invincible stocks is streaming giant Netflix (NASDAQ:NFLX). Just like many people doubted the e-commerce business model, many people likewise doubted the streaming business model. Those doubters were wrong. Streaming has become the biggest trend in video today, and Netflix has led the way. In doing so, Netflix has generated an amazing 6,000-plus points in alpha over the past decade.This trend of out-performance will continue. In the streaming wars, all that matters is content, since better content drives sub growth and price hikes, which leads to revenue growth, margin expansion, and profit growth. Netflix has already won the content game. It has more reach than any other streamer, so it has more data to produce better content and it can justify spending more money to produce better content, too. Considering no one else will likely get to Netflix's size any time soon, that means Netflix has a huge advantage in streaming that isn't going away any time soon. * The 5 Best ETFs to Buy for a Complete Income Portfolio So long as the ultra-critical content advantage doesn't go away, Netflix stock will remain on an uptrend. Salesforce (CRM)Source: Shutterstock Past Decade Performance (Alpha): 1,860% (over 1,500%)Market Cap: $125 billionOne of the biggest themes in the business world over the past several years has been the migration of enterprise processes from on-premise to the cloud, and the company leading that secular transition has been Salesforce (NYSE:CRM). Over the past decade, the cloud has gone from niche to mainstream, as enterprises have increasingly realized its cost and convenience benefits. When these enterprises turned to the cloud, the first company greeting them was Salesforce, and that's largely why CRM stock has generated over 1,500 points of alpha over the past decade.The stock will continue to be a big winner for the next several years. This is a high-growth, high-margin company that is both supported by secular trends and attacking some very large markets. The valuation underlying CRM stock is rich. But, that's always the case for big growth stocks, and those big growth stocks always grow into those rich valuations so long as the growth trajectory remains healthy. It will for CRM stock, mostly because the cloud and data revolutions are still in their early innings (only about 20% of enterprise workloads have migrated to the cloud).All in all, because of its leadership position in a market that projects to be a big grower for a lot longer, CRM stock likewise projects to a big winner for a lot longer. Adobe (ADBE)Source: Shutterstock Past Decade Performance (Alpha): 1,330% (over 1,000%)Market Cap: $130 billionAnother cloud giant that has won big over the past several years is Adobe (NASDAQ:ADBE). Over the past decade, Adobe has gradually shifted its business model from one-off, on-prem sales to recurring, cloud subscriptions and in so doing, it has significantly improved revenue predictability and profitability. It has also expanded its business to include enterprise-level cloud solutions. This combination of tailwinds has led to ADBE stock generating over 1,000 points of alpha over the past ten years.Adobe stock will generate big alpha over the next ten years, too. At its core, this company is the visual cloud leader. That is, it dominates in delivering cloud solutions focused on storing, organizing, analyzing and creating visual-heavy experiences. The world is pivoting towards both producing and consuming these visual-heavy experiences in greater volume, perhaps most broadly evidenced by the rise of photo and video sharing apps like Instagram. As this pivot continues to play out, the visual cloud will only become more important to enterprises, and Adobe will only win over more customers. * 7 Financial Stocks to Invest In Today As they do, the stock will keep heading higher in a long-term window. Nike (NKE)Source: rodrigofranca via FlickrPast Decade Performance (Alpha): 680% (410%)Market Cap: $136 billionThe only non-tech stock on this list is athletic apparel giant Nike (NYSE:NKE), and that's because Nike's sustained dominance in the athletic apparel market is largely unmatched in any other non-tech industry. It seems like that ever since the mid-1990's and Michael Jordan, Nike has been top dog in the athletic apparel market. Impressively, over the past ten years, that dominance has only grown, as the company has continued to attract the best athletes, create the best shoes, roll out the best marketing and do all three of those things far more quickly than peers. Consequently, Nike stock has generated an impressive 410 points of alpha over the past decade.There were signs that the Nike stock uptrend was going to end in 2017. That was just a head fake. Nike fell asleep at the wheel. Competition gained ground. The sleeping giant woke up. Nike doubled down on innovation, speed to market and marketing. They've since crushed the competition, and are now as dominant as they've ever been in the athletic apparel market. This example proves that Nike is king in this market and that the company will remain king so long as management keeps executing.They've been executing almost flawlessly for over twenty years now. There's no reason to believe that, after already squashing threats in 2017, this great execution won't continue. As such, Nike stock will remain a long-term winner. Alphabet (GOOGL)Source: Shutterstock Past Decade Performance (Alpha): 635% (365%)Market Cap: $830 billionWhat is the internet without search? Nothing. That's exactly why, as global internet penetration rates have more than doubled over the past ten years, global digital search giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has turned into a global utility. Internet consumers don't just want Google. They need it. This need has been the fuel for GOOGL stock's 365 points of alpha over the past decade.Because the internet is still growing, Alphabet will continue to grow, too. The global internet penetration rate is still just over 55%, and that rate is growing by several points every year. Thus, within the next decade, we are likely to see 70%, 75% and even 80%-plus internet penetration rates. As the global digital economy grows from a 55% penetration rate to a 70%-plus penetration rate, the number of users on Alphabet's suite of platforms (most notably, Google and YouTube) will continue to rise. As will ad dollars and profits. There's also the cloud, AI and self-driving businesses, which in it of themselves are big-growth businesses oozing with long-term potential. * 5 of the Best Stocks to Buy Under $10 In other words, the Alphabet growth narrative is far from over. That means the uptrend in GOOG stock is also far from over. Intuitive Surgical (ISRG)Source: Jon Fingas via Flickr (Modified)Past Decade Performance (Alpha): 1,530% (over 1,000%)Market Cap: $65 billionAnother major secular growth trend during the 2010's was automation, and one major company at the heart of this trend has been Intuitive Surgical (NASDAQ:ISRG). Intuitive Surgical creates robots called da Vinci that assist with medical surgeries and procedures. As the automation trend has made its way into the medical world, adoption of da Vinci robots has skyrocketed. This surging adoption has led to a 1,500%-plus rally in ISRG stock over the past decade.The exciting part of Intuitive Surgical is that this medical robot growth narrative is still in its early innings. There are over 400,000 operating rooms in the world. Only around 5,000 have a da Vinci operating system. That means there's lots of room for da Vinci to grow globally as the automation wave becomes more broadly adopted in the medical sector.The implication for ISRG stock? Sustained big growth over the next several years will keep ISRG stock on a winning path.As of this writing, Luke Lango was long AMZN, NFLX, ADBE, NKE and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post 7 Invincible Stocks Leading The Bull Market Higher appeared first on InvestorPlace.
When Salesforce introduced Einstein, its artificial intelligence platform in2016, it was laying the ground work for artificial intelligence underpinningsacross the platform
SAN FRANCISCO, March 19, 2019 /PRNewswire/ -- Salesforce [NYSE: CRM], the global leader in CRM, today announced new artificial intelligence and productivity solutions that empower customer service agents to focus more of their time on the human side of service — tasks that require social intelligence, critical thinking and creative problem solving skills. As customer service rapidly evolves from a reactive back-office function to one that impacts every stage of the customer's journey, service agents are continually asked to do more. With new AI-powered recommendations, automated routing, and embedded productivity and collaboration capabilities, Salesforce is reimagining the agent experience to meet the needs of today's connected customer.
Salesforce (CRN) had a tremendous 4Q18, yet the stock is down after 1Q19 guidance estimates came in slightly below Wall Street's expectations; such is the fickle nature of the stock market, suggests Todd Shaver, editor of BullMarket.
Recently, I've become increasingly convinced that Salesforce.com (NYSE:CRM) is an important barometer for the tech sector as a whole. CRM stock price isn't the only gauge investors need to watch, But Salesforce stock still seems to provide a pure look at investors' preferences.Source: Shutterstock The key reason why is that Salesforce.com 's story is reasonably simple. It has a fantastic business. No one can dispute that. As CEO Marc Benioff pointed out on its Q4 conference call earlier this month, the company was the fastest enterprise software company ever to reach $13 billion in sales. (The company celebrated its 20th anniversary on Mar. 8) Its revenue growth has been almost bizarrely consistent for years now, hovering generally in the 24%-26% range. * 7 Small-Cap Stocks That Make the Grade And there really aren't any external factors that can materially change its outlook. Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE) are trying to compete in customer relationship management, or CRM, software, but the dominance of Salesforce.com appears assured. A downturn in the macro cycle likely would impact Salesforce stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut given multi-year contracts and the importance of CRM software to businesses, the impact likely would be manageable. (Note that CRM's revenue more than tripled between 2007 and 2011.)Of course, CRM stock price also isn't cheap or close to it. And so Salesforce stock provides an intriguing answer to an interesting question: what, exactly, are investors willing to pay for growth?Coming off the company's fourth-quarter report, it appears investors aren't sure about the answer to that question. Once they figure it out, the rest of the market may as well. Earnings "Surprise" for Salesforce Stock (Yeah, Right)Salesforce's earnings came in nicely ahead of Street estimates on both the top and bottom lines. That surprised exactly no one remotely familiar with Salesforce stock; as I wrote before the report, Salesforce.com hasn't missed on either revenue or earnings in at least five-plus years.Yet it wasn't good enough. The company's guidance looks a bit disappointing, as Nicholas Chahine detailed after the report. The CRM stock price fell 3.7% on the day of the report and dipped almost 1% on the following day. Salesforce stock wound up falling 6% for the week, but it has since regained the majority of its losses.Bu the initial selloff seemed to confirm the risk facing CRM stock and the market. Bear in mind that the CRM stock price over time has been an exaggerated reflection of the market as a whole. It gained steadily in the first years of the decade, as the market recovered, and its gains accelerated in 2016 and 2017, as the stock market gained steam.Salesforce stock peaked in early October 2018 and then plunged as the Q4 selloff hit. CRM stock lost over 25% of its value in less than three months and took three and a half months to gain it all back, and then some.The profit-taking after the strong Q4 report seemed to suggest that investors were paying more attention to risk, but subsequently, as noted above, CRM stock regained most of the losses it had suffered this month. How High Can the CRM Stock Price Go?The issue at this point is that Salesforce stock is expensive, really expensive. It still trades at about 60 times the company's 2020 earnings guidance. At some point, investors will start worrying about the valuation of even a great business, which Salesforce.com unquestionably is.From here, it still looks like valuation fears drove the initial post-earnings reaction. Disappointing guidance is a good talking point, but again, Salesforce.com never misses analyst estimates. It's reasonably obvious at this point that the company guides conservatively. Meanwhile, Q1 and 2019 projections aside, the company also predicted that its revenue would double again by fiscal 2023.There was nothing wrong with the company's Q4 results. The issue is its valuation. But there's another aspect of Salesforce stock that could demonstrate investors' appetite for risk. Salesforce.com predicts that its non-GAAP EPS will come in at $2.74-$2.76, but that includes stock-based compensation of $1.84 .That's two-thirds of its projected net income. Back that out, and CRM stock is trading at over 172 times the high end of this year's earnings guidance. Some investors have questioned whether Salesforce stock should have such a high valuation. If more investors agree, CRM stock likely would be the first stock to take a big hit. Watch CRM Going ForwardBetween the stock's valuation and the company's share-based comp, CRM obviously is a growth stock. And the relatively simple nature of its outlook means there's one key argument regarding Salesforce stock: what to pay for the business. Bulls will argue that paying up for Salesforce stock has been a great bet for nearly 15 years. Bears will reply that, at some point, the rally has to end.That argument is a stalemate right now. It's worth paying close attention to who wins in the near-term. Where CRM stock goes, other growth stocks - like Square (NYSE:SQ), Shopify (NYSE:SHOP) and Workday (NASDAQ:WDAY) - are likely to follow.If Salesforce stock is too expensive, so is pretty much every other stock in the market; few, if any, of them have as an outlook that's as good as CRM. If investors are willing to pay up for CRM stock now, however, they'll likely be willing to stretch for other growth plays. The pre- and post-earnings movements of CRM stock price show the market isn't quite sure which side to take. At some point soon, that will change.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post Keep a Close Eye on Salesforce Stock appeared first on InvestorPlace.
Friday was another strong day, with stocks melting higher. It sets up an interesting dynamic with a Federal Reserve statement coming out next Wednesday. As it stands though, the S&P 500 continues to trade well and push through a notable level near 2,800. Let's look at our top stock trades to watch for Monday. Top Stock Trades for Tomorrow 1: Adobe SystemsShares of Adobe Systems (NASDAQ:ADBE) fell after reporting earnings on Thursday after the close. While full-year guidance was okay, management's outlook for next quarter came up a little short. In a way, that reminds me of Salesforce (NYSE:CRM), which had a similar report.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks Sitting on Huge Piles of Cash So what now?Like CRM, bulls may feel comfortable enough to gobble up Adobe on this result. However, below $250 and concerns will start to elevate. Not only are both the 50-day and 200-day moving averages near this mark, but the 61.8% Fibonacci retracement from the December lows to the October highs is here too.If ADBE closes below $250, it will be in no man's land. In that sense, longs might find the stock to have an attractive risk/reward. If Adobe can get back over the 20-day average, look for it to fill the gap up through $265. Top Stock Trades for Tomorrow 2: AppleSpeaking of gaps, Apple (NASDAQ:AAPL) filled its gap from back in November today. That came after the stock powerfully stormed through the $185 level and is now threatening to run to the 200-day moving average.The gap fill was our target in Apple earlier this week, while a move to the 200-day is our second target. That's a good reason to trail up stops and consider locking in some profits. Apple stock is overbought according to the RSI and no one's ever gone broke by locking in a gain. Top Stock Trades for Tomorrow 3: Aurora CannabisAfter a monster move on Wednesday, Aurora Cannabis (NYSE:ACB) had an inside day on Thursday, setting up for the possibility of a rally on Friday. That's what we flagged on Friday morning before the move.There was plenty of time to get in this one below $9 and those that haven't may want to take a pass at this point. $10 is not an unrealistic target at this point, although that's only 41 cents short of current prices.Longs should trail up stops and keep other cannabis stocks in mind. For instance, while Canopy Growth (NYSE:CGC) is putting together a super tight coiling pattern, investors of both CGC and ACB need to remember that Tilray (NASDAQ:TLRY) will report earnings on Monday. Top Stock Trades for Tomorrow 4: Ulta BeautyUlta Beauty (NYSE:ULTA) is putting together a strong post-earnings rally on Friday, up 9% after beating on top and bottom lines. The rally is stunning, particularly given the modest rally we were seeing this morning.In any regard, I will be watching this on Monday, where investors should look for a flat or weak open. If that's the case and Ulta quickly goes green, it may want more upside and we can have a limited-risk setup by using the morning's low (assuming it's within reason). If so, perhaps we can some follow through like we did with Costco (NASDAQ:COST). Top Stock Trades for Tomorrow 5: TeslaInvestors aren't buying the Model Y hype from Tesla (NASDAQ:TSLA). Friday's decline means Tesla stock remains trapped in a nasty downtrend that isn't over yet.The 20-day moving average stopped Tesla dead in its tracks on Thursday, although the Model Y unveil is certainly the issue on Friday, not the moving average. If the stock takes out this month's lows, look for a test of channel support, likely near $265. * 15 Stocks That May Be Hurt by This Year's Big IPOs If Tesla continues to fall, it may have a date with $250.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post 5 Top Stock Trades for Monday: Apple, Aurora, Adobe, Tesla, Ulta appeared first on InvestorPlace.
HENDERSON, NV / ACCESSWIRE / March 15, 2019 / If you're looking for exposure to artificial intelligence, there are several potentially attractive investment options. From retail to cloud services to software, ...
Salesforce.com and Microsoft will leverage their cloud-computing prowess to drive further growth, says a Mizuho Securities analyst that called both companies “top picks” in software.
Salesforce disclosed in its annual filing last week that it is moving away from a “U.K.-centralized European structure” and investing in other European cities like Dublin to mitigate the impact of Brexit on its business. Although British lawmakers are once again expected to vote to delay Brexit, which is scheduled for later this month, more investors are asking about its future risk. In fact, in the past three months, 93 earnings calls of the S&P 500 companies (or more than half of the 181 mentions in the past 12 months) addressed Brexit and its potential impact, according to FactSet.
Brokerage firm Mizuho began research coverage of (MSFT) and (CRM) on Thursday with strong recommendations for both stocks because of what they have to offer in the cloud. Microsoft (ticker: MSFT), currently the world’s most highly valued company at $878.5 billion, received a Buy recommendation and $135 price target, 18% higher than its closing price of $114.50 on Wednesday. Mizuho is bullish on the software sector in general.