Is Salesforce due for a correction any time soon?’s stock price climbed to new heights this week, and analysts say ‘nothing has yet to suggest of a major turn lower’.

  • Salesforce closed at new high of US$281.25 on Tuesday
  • Analysts see further upsides for the software stock
  • Salesforce raised full-year revenue guidance by 3.5%

US software company's (NYSE: CRM) stock price continues to gain this week, closing at a new high of US$281.25 a share on Tuesday (01 September 2020).

IG’s client analysis shows that ‘buys’ form 55% of all trades on Salesforce so far this week.

Meanwhile, 91% of all positions on the stock are currently ‘long’ (buy), indicating an expectation for price to increase in the future.

Salesforce share price rally: Is there an end in sight?

IG UK chief market analyst Chris Beauchamp wrote that the stock’s record prices, as impressive as they are, do pose a difficult question for investors and traders – do they take profits or hold?

‘Even worse, should new traders buy now, or wait for a pullback that may never arrive?’, he further noted.

‘With both stochastics and MACD at elevated levels, some might think the time has come for caution. Perhaps the stock will now consolidate, or perhaps it will do what textbooks say should happen, and fill the gap created last week.

‘This might see it head back towards $220, the lower bound of the gap higher. One thing is more or less certain, and that is that the chart has yet to provide any suggestion of a major turn lower’, Beauchamp wrote.

Ready to buy or sell Salesforce stock? CFDs allow you to do just that without trading the underlying asset. Open a live or demo account with IG today.

Looking further ahead, Jefferies equities analyst Brent Thill has raised his 12-month share price target on Salesforce to US$285 while maintaining a ‘buy’ rating, citing that the company ‘can deliver more margin improvement given its scale’.

Meanwhile, Morgan Stanley gave a median price estimate of US$275, with a high target of US$335 in a blue-sky scenario. currently has an average 12-month share price target of US$266.50 per share and ‘buy’ rating from 38 analysts, based on a Bloomberg poll.

Why did the Salesforce stock spike up 30%?

The CRM (customer relationship management) solutions provider saw its share price burgeon over 30% last week, driven by two huge announcements.

First, it was revealed on Monday 24 August 2020 that the company wold be included on the Dow Jones Industrial Average starting the following Monday 31 August, making it the first cloud-based digital platform to join the index.

Four days later, the company smashed Wall Street estimates in its latest earnings as it reported a quarterly revenue of US$5 billion for the first time.

The company then raised its sales revenue outlook for the year in the earnings report by at least 3.5% to a range of US$20.7 billion to US$20.8 billion, up from US$20 billion previously.

This combination of positive developments allowed the stock to close the week at US$271.10 – well above its previous simple moving average of around US$200.

How to trade US stocks with IG

Are you feeling bullish or bearish on

Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

  1. Create a live or demo IG Trading Account, or log in to your existing account
  2. Enter < inc> in the search bar and select the instrument
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.