Salesforce Inc. (CRM) shares climbed nearly 3% on Monday, riding a wave of renewed risk appetite that lifted the broader tech sector. The Nasdaq gained 1.24%, and the S&P 500 advanced 1.13%, but Salesforce outpaced both, suggesting something more specific than just a rising tide.
The move looks like a classic sector rotation. After a strong run in semiconductor and AI hardware stocks, some investors are shifting profits into enterprise software names that have lagged the broader rally. Salesforce, with its hefty valuation and steady growth, becomes a natural target for that money.
Technical Picture Improves, But Not Fully
From a chart perspective, Salesforce is looking healthier than it has in weeks. The stock is now trading about 10% above both its 20-day and 50-day simple moving averages, a sign that short-term momentum is building.
But there's a catch. The stock remains roughly 8% below its 200-day moving average, and the 50-day average is still below the 200-day. That means the longer-term trend hasn't fully turned bullish yet. Think of it as a patient who's out of bed but still needs a few more days before they're ready for a jog.
Momentum indicators are also improving. The MACD is above its signal line, suggesting buyers are gaining strength after the recent pullback. Traders will likely keep an eye on resistance near $190.50, with support sitting around $156.50.
Earnings on the Horizon
The next big catalyst is Salesforce's earnings report, expected on Sept. 2. Wall Street is looking for earnings of $3.09 per share, up from $2.91 a year ago. Revenue is projected to hit $11.31 billion, compared with $10.24 billion in the same quarter last year.
Analyst sentiment is a mixed bag right now. The stock carries a consensus Buy rating with an average price target of $238.43, but recent actions show some hesitation. Morgan Stanley downgraded the stock to Equal-Weight and cut its price target to $185 on July 21. CLSA initiated coverage with a Hold rating and a $165 target on July 20. On the flip side, Evercore ISI maintained an Outperform rating while trimming its target to $250 on July 14.
ETF Exposure Adds Another Layer
Salesforce is also a significant holding in several tech-focused ETFs, including the SmartETFs Advertising & Marketing Technology ETF, the iShares Expanded Tech-Software Sector ETF, and the First Trust Dow Jones Internet Index Fund. That means fund flows can create additional buying or selling pressure on the stock, independent of company-specific news.
At the time of publication on Monday, Salesforce shares were up 2.76% at $189.10, according to market data.
