Today’s Research Reports on Stocks to Watch: salesforce.com and Box Inc.

NEW YORK, NY / ACCESSWIRE / May 31, 2018 / Salesforce.com saw gains in Wednesday’s trading session after posting strong first quarter results. The stock broke out to a new record high and received several price target hikes from analysts. Shares of Box Inc. also closed up yesterday but saw red in after-hours trading after posting conservative guidance for the second quarter.

RDI Initiates Coverage on:

salesforce.com, inc.
https://www.rdinvesting.com/report/?ticker=CRM

Box, Inc.
https://www.rdinvesting.com/report/?ticker=BOX

salesforce.com, inc. shares closed up almost 2% on Wednesday with a little over 14 million shares traded. The stock hit a new record high of $132.55 during intra-day trading after crushing in its first quarter results which the company released late Tuesday. For the quarter, revenue saw an increase of 25% to hit over $3 billion. According to FactSet, this beat estimates by roughly 2%. Adjusted earnings per share were reported at 74 cents, way ahead of analyst expectation of 46 cents. Analyst Richard Davis of Canaccord Genuity raised his price target on the stock from $135 to $150 and said, “Fundamentals in this industry are as good as I’ve seen them in a decade. Valuations are above average, and they should be.” Davis also remarked, “One of the primary reasons why Salesforce is “sticky” with customers (despite inevitable wheezing about pricing) is that Salesforce integrates with so many other software vendors. In our opinion, the software industry has become an industry of open API’s and “coopetition.” This is what [CEO Satya] Nadella finally did for Microsoft, and it has been Benioff’s vision for Salesforce since day one.” It was revealed during the earnings call by CEO Marc Benioff, that salesforce.com had closed its largest deal ever with an unnamed insurance company during the quarter.

Access RDI’s salesforce.com, inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=CRM

Box, Inc. shares closed up 1.94% on Wednesday on about 9.2 million shares traded but then fell almost 5% in after hours after the cloud storage provider posted first quarter results and guidance. Though first quarter results beat what analysts had been expecting, second quarter guidance had traders concerned. For the first quarter the company posted revenue of $140.5 million and a loss of 7 cents a share. Analysts were waiting for revenue of $139.7 million and a loss of 8 cents a share. For the second quarter, the company has projected that revenue will fall in the range of $146 to $147 million. Analysts were expecting $146.1 million. CEO Aaron Levie said to Reuters, “I think investors are always … looking for us to continue to raise guidance … We think that makes sense but obviously we want to guide to numbers we feel very comfortable and confident.” The company also revealed that it will be investing in cyber security, compliance and administrative technology and will be expanding to Australia, Canada, and Germany. Levie remarked, “The growth rates of those markets are still lower because of how early we are building out our presence … But we do expect they will be able to increase in the near future.” Shares of Box have seen gains of almost 50% in the last twelve months.

Access RDI’s Box, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=BOX

Our Actionable Research on salesforce.com, inc. (NYSE: CRM) and Box, Inc. (NYSE: BOX) can be downloaded free of charge at Research Driven Investing.

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