The increasing software spending environment has boosted Salesforce’s sales and profitability tremendously. The firm had a spectacular quarter in Q2, with revenues up 23% year-over-year and profitability up 2.8% from the same quarter last year.
The company could continue to perform well in the upcoming quarter, due to its wide range of commercial software services. In addition, the acquisition of Slack could lead to stronger Q3 results.
Encouraging Website Traffic Numbers
According to online volume data, Salesforce’s website traffic patterns appeared to be improving in fiscal 3Q. From August to October, the number of unique visits to Salesforce’s website climbed by 3.5%. Also, the stock price increased by 23.9% during the same time period.
On a year-to-date basis, the total number of unique visits to Salesforce’s website has increased by 3%.
These statistics indicate that Salesforce’s fundamentals and prospects remain strong.
User Data by Geography
To gain better knowledge of online traffic patterns and user behavior, we looked at website traffic data by location.
The United States took the largest portion of the share in October, accounting for 54.9%. Meanwhile, India’s users accounted for 11.2% of all unique virtual visitors, putting the country in the second position, ahead of the United Kingdom, Australia, and Canada.
According to Monness analyst Brian White, Salesforce is expected to generate strong results in the fiscal third quarter.
White believes Salesforce will profit from the growing digital transformation. Earlier this week, he wrote, “We believe Salesforce is uniquely positioned to capitalize on accelerated digital transformation efforts with a platform that is stronger and more relevant than ever while benefiting from a new model, the addition of Slack, and a global economic recovery.”
As a result, White maintained a Buy rating on the stock and a price target of $328.
Wall Street’s Stance
Wall Street analysts also have given Salesforce a Strong Buy consensus rating, with 38 recent ratings, including 32 Buys and 6 Holds. The company is now trading at $289.17, with the average CRM price target of $329.25, implying 13.9% upside from that level.
Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.