Salesforce stock (NYSE: CRM) climbed over 6% in the pre-market trading on Thursday, amid optimistic forecasts for revenue growth and strategic initiatives.
The surge on Thursday came after some optimistic forecasts around the revenue growth of the company, which eased investors’ concerns around Salesforce’s future outlook amid evolving AI technologies.
This significant pre-market gain positions Salesforce for a potentially strong trading session and make it a good opportunity for new investors.
Why Salesforce stock is rising today
Salesforce’s stock surge came as the company dropped an upbeat revenue forecast and unveiled a series of big strategic moves that have investors feeling confident again.
At its Dreamforce event, Salesforce said it expects to hit over $60 billion in annual revenue by 2030, comfortably topping Wall Street’s estimate of about $58.37 billion.
That’s a bold statement, especially considering Salesforce faced its first revenue dip in nearly three years earlier this year.
But this new outlook suggests the company’s growth story is back on track. It’s also helping calm concerns that AI tools might chip away at demand for Salesforce’s core CRM products.
One major reason for the optimism? Salesforce’s plan to acquire Informatica for $8 billion.
Informatica is a heavyweight in cloud data management, and the deal, expected to wrap up in the first half of next year, could supercharge Salesforce’s AI game.
By combining Informatica’s powerful data integration and governance tools with its own cloud platform, Salesforce is positioning itself as a leader in AI-driven customer relationship management.
Salesforce also announced a $7 billion share buyback over the next six months.
Analysts at JP Morgan and elsewhere see this as a strong vote of confidence in the company’s cash flow and growth trajectory.
With growing partnerships with OpenAI and Anthropic, plus continued investment in AI adoption, Salesforce is doubling down on its mission to deliver sustainable double-digit growth.
What analysts say
Analysts have largely reacted positively to Salesforce’s latest developments and financial outlook.
Following Salesforce’s announcement of a revenue target exceeding $60 billion by 2030 and a projected organic subscription revenue growth rate of over 10%, many experts see an improvement in investor sentiment.
Evercore ISI noted a return to net new annual order value growth, suggesting potential acceleration in subscription revenue.
BofA Securities maintained a Buy rating with a $325 price target, highlighting Salesforce’s strong financial health and margin expansion prospects.
Wolfe Research and Stifel also reiterated Buy ratings, emphasizing confidence in Salesforce’s AI-driven growth and new product launches like Agentforce 360.
Needham stands out with a strong Buy rating and a $400 price target, expressing optimism driven by AI investments and market potential.
However, RBC Capital remains more cautious with a Sector Perform rating and a $250 target, focusing on challenges in transitioning to AI-driven services.
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