Salesforce (NYSE: CRM) sharing jump more than 12% in early trading on Wednesday after the cloud computing software provider posted first-quarter results that topped expectations and provided guidance that prompted investors to move in other cloud computing stocks.
Service Today (NYSE: NOW) increased by more than 3.5% behind the results, during Labor Day (NASDAQ: WDAY), Adobe (NASDAQ: ADBE) and Autodesk (ADSK) saw more moderate gains, including a 2% gain over Adobe.
Wedbush Securities analyst Dan Ives, who has an outperform rating on Salesforce (CRM) shares and a target price of $ 225 per share, noted that Salesforce (CRM) is seen as a bellwether for tech and with it reporting outside the normal schedule, investors “focused the laser” on the report and its comments to see if there were any signs of weakness. Rather, it is the opposite.
In addition to Salesforce (CRM) reporting first-quarter revenue of $ 7.41B, which was higher than analysts ’estimates of $ 7.38B in sales, Ives said in a research that the company“ gave a mixed guidance that is better than the terror of the Street and will be a key shot in the arm for the tech bulls. ”