Salesforce Stock Blows Up as Wall Street Feasts on AI Hype and Earnings Power Play (Shares Rip 14%)

Well would ya look at that. Salesforce gave everyone an absolute clinic on how to light Wall Street on fire with shares torching their way 14% after its Q3 earnings and some AI magic. Spoiler Alert: Want to send your stock to the moon? Just say “AI” 15 times during an earnings call.

In short, Salesforce posted $9.44 billion in revenue for the quarter ending October 31, an 8% year-over-year climb that casually destroyed the $9.34 billion analysts were expecting. Net income? A fat $1.5 billion, up 25% from last year’s $1.2 billion. Lawd have mercay. On the other hand, Salesforce earnings per share came in just shy of estimates ($2.41 vs. $2.44 expected), buuuuut nobody gave a damn. Why? 

Because Salesforce’s fourth-quarter sales projection—$9.9 billion to $10.1 billion—slapped the Street’s $10.05 billion midpoint estimate in the face, all while the company upped its FY 2025 revenue guidance to  $37.8 billion. Translation: Salesforce is apparently printing cash. 

(Source: Bloomberg) 

So yeah, if you thought Salesforce was going to coast on CRM software, think again. Marc Benioff came out swinging with Agentforce, the company’s new break neck AI-powered chatbot system—with the pitch being that these bots will handle customer service and sales tasks so seamlessly, you’ll wonder why humans existed in the first place. Benioff called it a “bold leap into the future of work,” and while that’s corporate speak for “fingers crossed”, it worked. 

Investors went absolutely feral as they didn’t just like the report—they devoured it. Shares mooned 14% from $331 to $378, meaning if the rally holds, the stock is poised to hit an all-time high and chalk up its biggest single-day gain since March 2023.

(Source: CNBC) 

Now with that said, there are some alarm bells ahead. Growth in Salesforce’s big-ticket acquisitions like Slack, Mulesoft, and Tableau is slowing. Mulesoft, for example, managed just 1% revenue growth this quarter, a pathetic crawl compared to last quarter’s 13% jump. Meanwhile, Shopify is making a mess of Salesforce’s Commerce Cloud, stealing clients and reminding everyone that competition in this space is cutthroat.

But still, even with the threats, Salesforce no doubt dropped the mic with these Q3 numbers. Between the earnings beat, upgraded guidance, and AI-fueled optimism, the company has once again proved it knows how to own the narrative. Sure, there are cracks in the armor, but Wall Street doesn’t care right now—it’s too busy sniffing lines and getting plastered on the friggin AI bandwagon.

(Source: Giphy) 

And luckily for Salesforce investors, they are the ones benefiting the most this morning. In the meantime, keep an eye on Salesforce throughout the day to see if the rally holds—and as always, stay safe and stay frosty, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.