Salesforce shares soar 16% on strong profit forecast
Shares of cloud-based software provider Salesforce Inc soared 16% to $193.91, the largest intraday gain since August 2020, on Thursday after it announced strong profit forecast for the full year.
The company also doubled its share buyback program to $20 billion.
Salesforce shares on Thursday closed at $186.59, 11.50% up, on the NYSE.
Salesforce on Wednesday posted better than expected fourth quarter earnings. In the fourth quarter ended 31 January, 2023, its revenue rose 14% to $8.38 billion, beating forecast of 9.2% growth.
The software maker said on Wednesday that its operating margin will be about 27% in the fiscal year 2024, higher than the 22.5% for fiscal year 2023.
The company’s plan to integrate artificial intelligence into all of its cloud, as well as Slack, data analytics platform Tableau and MuleSoft platform also gave a fillip to the stock.
In past few months, Salesforce had laid off 8,000 workers, swapped board directors and lost several top executives.
The Salesforce stock had surged 26% this year, more than double the rally of Nasdaq 100.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.