Market Commentary

Salesforce Stock Tumbles on Soft Guidance

Rahul Joshua · 1 minute read

Salesforce (CRM:US) shares plunged more than 8% Thursday after the software company offered a weaker-than-expected forecast for its fiscal fourth quarter. 

For the third quarter, Salesforce reported earnings per share of $1.40 on revenue of $7.84 billion. These results came in better than expected as analysts expected earnings of $1.21 per share on revenue of $7.82 billion.

However, CRM stock was hit by a soft forecast which sees the software maker generating between $7.9 billion and $8.03 billion, missing the analyst consensus of $8.02 billion. Salesforce also said it expects to take a $900 million hit in sales due to FX headwinds.

Salesforce shares are now trading more than 42% lower year-to-date (YTD).

Looking at Congress members who were buying CRM shares in 2022, Rep. Ro Khanna was buying the stock throughout the year. His most recent buy trade occurred on October 3, when the stock closed at $147.90 a share. Congressman Khanna was also buying CRM shares at prices exceeding $160, $180, and $200 per share, earlier in 2022.

Democrat Josh Gottheimer, a Representative from New Jersey, is another Congress member who was accumulating CRM shares this year. He disclosed two buy trades for the months of October and July, similar to trades reported by representative Kathy Manning.

Among other Congress members, Representatives John Curtis and Alan Lowenthal were also buying Salesforce stock, which closed at $147.00 on December 1.