Salesforce thesis intact despite demand weakness — TradingView News

** Salesforce CRM forecast second-quarter profit and revenue below Wall Street estimates on Wednesday due to weak client spending on its cloud and enterprise business products

** CRM drops 16% to $227.93 in premarket trading

FREE CASH FLOW STILL A BRIGHT SPOT

** Barclays (“overweight”, PT: $305) says CRM is not immune to macro issues that have plagued rest of software cos

** Expects shares to trade lower near-term, though it doesn’t change the long-term story

** Morgan Stanley (“overweight”, PT: $320) says while qtr was disappointing and likely reduces investor conviction on co’s near-term rebound in growth, impacts are more cyclical than secular

** Raymond James (“strong buy”, PT: $325) acknowledges that slowdown in growth will “never be well-received”, but thinks magnitude of few points of remaining performance obligations (RPO) growth isn’t thesis changing

** Views share reaction after hours as “overdone”

** D.A. Davidson (“neutral”, PT: $230) notes FCF generation capabilities remain an area of strength

** Baird (“outperform”, PT: $295) expects investors to focus on achievability of CRM’s FY25 outlook, given current RPO trends having softened