The Case for and Against salesforce.com, inc. (CRM)

salesforce.com, inc. (CRM) is an interesting player in the Technology space, with a focus on Application Software. The stock has been active on the tape, currently trading at $136.50, up from yesterday’s close by 0.18%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

salesforce.com, inc. (CRM) currently trades with a market capitalization of $101.69 Billion. That value represents a market adjusting for revenues that have been growing by 25.41 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $2.47 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.47 on a per share basis this quarter. Perhaps, that suggests something about why 5.29% of the outstanding share supply is held by institutional investors.



Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, salesforce.com, inc. recorded a 52-week high of $137.50. It is now trading 1% off that level. The stock is trading $125.84 its 50-day moving average by -10.66%. The stock carved out a 52-week low down at $84.89.

In recent action, salesforce.com, inc. (CRM) has made a move of +6.53% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.57, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.61% with $696.98 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CRM.

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