Salesforce Positioned for Strong Q4 Earnings But Slowing Growth Raises Questions About Long-Term Prospects
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Salesforce is expected to report strong Q4 2022 earnings, with revenue of $9.22B and EPS of $2.22, putting it on track for profitability in 2023 after losses in 2022.
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Net income grew significantly in 2022, with $1.2B profits in Q2 and Q3, expected to continue into Q4. However, revenue growth continues to slow.
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Salesforce is prioritizing AI, acquiring AI companies and launching Einstein GPT, its first AI tool for CRM. Its fastest growing segment is AI-powered data cloud services.
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According to analysis, Salesforce has strong financial health - excellent growth and price momentum. But high valuation ratios and no dividends could be issues long-term.
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Technically, if earnings exceed expectations, CRM stock could continue uptrend to $355 next target. But failure at resistance near $300-310 could trigger a correction down to ~$270 support.