Salesforce focuses on Data Cloud solution after challenging quarter: Baird
Salesforce (NYSE:CRM) is focused on its Data Cloud solutions and working through a tough macro environment after suffering a first quarter that was weaker than the market expected.
Salesforce shares plunged late last month after the enterprise software giant reported fiscal first-quarter results and guidance that missed estimates.
They have recovered somewhat, but were down about 2% during late market trading on Wednesday. The stock was also removed from BofA’s U.S. 1 List on Wednesday.
“Despite the 1Q’25 revenue miss, the company reiterated FY’25 guidance with confidence driven by several tailwinds (Data Cloud, pricing/packaging, MuleSoft, certain geo strength, vertical/industry offerings) offsetting ongoing macro pressures,” Oliver and Schulz said.
“Salesforce has not been alone in calling out a more challenging macro, with Couchbase (BASE), MongoDB (MDB), and Workday (WDAY) all citing similar trends,” they added. “We believe the company will need to report a solid quarter before investor confidence builds.”
Baird maintains its Outperform rating on Salesforce and a price target of $295.
