Fly On Wall Street

Why Salesforce Stock Soared 26% to a New All-Time High Today

What happened

Shares of salesforce.com (NYSE:CRM) rocketed 26% to a record high of $272.32 on Wednesday, following the release of the cloud computing leader’s outstanding fiscal 2021 second-quarter results. 

So what

Despite the challenges presented by COVID-19, Salesforce’s revenue climbed 29% year over year to $5.15 billion. The cloud software giant enjoyed broad-based growth across all of its business segments. Revenue in its sales, service, marketing/commerce, and platform divisions rose 13%, 20%, 21%, and 66%, respectively. 

Better still, Salesforce’s adjusted earnings per share soared 118% to $1.44. Even after excluding a $0.58 gain on its strategic investments, the company’s adjusted EPS still rose more than 30%.

“It’s humbling to have had one of the best quarters in Salesforce’s history against the backdrop of multiple crises seriously affecting our communities around the world,” CEO Marc Benioff said in a press release.

Now what

Salesforce is positioned to benefit from the digital transformation megatrend perhaps more than any other company. Companies of all sorts are adopting Salesforce’s cloud-based software, which makes it easier to conduct business remotely. Salesforce is also a leader in areas such as data aggregation, integration, and visualization, which are growing increasingly important as companies seek to harness actionable insights from a wide variety of information sources. These powerful tailwinds are fueling Salesforce’s growth, both today and likely well into the future.

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