Why are Salesforce (CRM), Affirm (AFRM) stocks in limelight today?

Highlights

  • Salesforce.com, Inc. (NYSE: CRM) raises full-year sales forecast to around US$26.25 billion and US$26.35 billion in FY22.

  • The CRM stock gained 26.12% YTD.

  • Affirm Holdings, Inc. (NASDAQ: AFRM) revealed plans to launch its new product, Adaptive Checkout.

The stocks of Salesforce.com, Inc. (NYSE: CRM) and Affirm Holdings, Inc. (NASDAQ: AFRM) were up around 2 percent and 1 percent, respectively, on Friday, a day after the former posted solid quarterly earnings, and the latter announced plans to launch a new product in the market.

The CRM stock traded at US$284.12, up 2.25 percent, while the AFRM stock traded at US$130.16, up 2.46 percent from its previous close at 9:53 am ET on Sep 24.

Here we explore the recent developments and performance of the stocks.

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Salesforce.com, Inc. (NYSE: CRM)

Salesforce is a San Francisco, California-based cloud-based software company. It provides a customer relationship management (CRM) platform for clients.

The firm raised its full-year revenue guidance on Thursday as demand for its software rose due to the growing hybrid work culture in the wake of the pandemic.

The company expects its full-year sales to be between US$26.25 billion and US$26.35 billion in FY22, up from its previous forecast of US$26.2 billion and US$26.3 billion.

In addition, the firm forecast its full-year revenue for fiscal 2023 to be between US$31.65 billion and US$31.80 billion, topping analysts' expectations.

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The firm's market cap is US$276.46 billion, and its stock rose 26.12 percent YTD. Its P/E ratio is 113.41, the forward P/E one year is 124.00, and the EPS is US$2.49.

The 52-week's highest and lowest stock prices were US$279.39 and US$201.51, respectively. Its trading volume was 15,617,210 on September 23.

Salesforce reported revenue of US$6.34 billion in Q2, FY22, representing an increase of 23 percent YoY. Its net income came in at US$535 million, compared to US$2.62 billion in the year-ago quarter.

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Trending Stocks: Salesforce (CRM) and Affirm Holdings (AFRM)

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Affirm Holdings, Inc. (NASDAQ: AFRM)


Affirm Holdings is a fintech company that offers a platform for digital and mobile commerce. In addition, the San Francisco, California-based firm offers digital payment services through its platform. The company had launched its IPO this year.

The company has been on investors' radar due to its popular "buy now, pay later" facility.

In addition, the company has announced plans to launch a new product called Adaptive Checkout, which will enable users to make biweekly and monthly payments.

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The firm has a market cap of US$34.83 billion and a forward P/E one year of -128.17. The AFRM stock surged 30.49 percent YTD.

The highest and lowest stock prices for the last 52 weeks were US$146.90 and US$46.50, respectively. Its share volume on September 23 was 21,027,950.

The company's total revenue was US$261.78 million in Q4, FY21, compared to US$153.33 million in the year-ago quarter. Its revenue for full fiscal 2021 was US$870.46 million.

The company reported a loss of US$128.22 million, compared to a net income of US$34.81 million in Q4, FY20.

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Bottomline

The technology sector has witnessed significant growth in recent months. The economic recovery has renewed investors' focus on the sector. Besides, the demand for fintech technology services also has accelerated gains in this segment. The S&P Information technology sector surged 20.10 percent YTD while increasing 6.06 percent QTD. The sector's dividend yield is 1.02 percent.

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