What's Going On With Salesforce Stock Today?

Salesforce Inc CRM shares are trading lower Thursday after the company reported third-quarter results and announced that Bret Taylor will step down as vice chair and co-CEO.

Q3 Results: Salesforce said third-quarter revenue increased 14% year-over-year to $7.84 billion, which beat average analyst estimates of $7.82 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.40 per share, which beat estimates of $1.21 per share. 

"In this time of economic uncertainty, we remain committed to profitable growth and consistent operating margin expansion," said Amy Weaver, president and CFO of Salesforce.

What Else: Taylor will step down as vice chair and co-CEO of Salesforce, effective Jan. 31, 2023. Marc Benioff will remain in his role as chair and transition from co-CEO to the sole chief of the company at that time. 

The stock appears to be largely reacting to Taylor's impending departure.

Outlook: Salesforce expects fourth-quarter adjusted earnings to be between $1.35 and $1.37 per share versus average estimates of $1.34 per share. The company sees full-year adjusted earnings between $4.92 and $4.94 per share versus estimates of $4.73 per share. 

See Also: Tesla, Amazon, Snowflake, Xpeng, Salesforce: Why These 5 Stocks Are Drawing Investors' Attention Today

Analyst Assessment: Several analysts cut price targets following the company's quarterly results.

• Oppenheimer analyst Brian Schwartz maintained Salesforce with an Outperform and lowered the price target from $200 to $185.
• UBS analyst Karl Keirstead maintained Salesforce with a Neutral and lowered the price target from $180 to $162.
• Baird analyst Rob Oliver maintained Salesforce with an Outperform and lowered the price target from $210 to $200.
• Wells Fargo analyst Michael Turrin maintained Salesforce with an Overweight and lowered the price target from $190 to $175.
• RBC Capital analyst Rishi Jaluria maintained Salesforce with an Outperform and lowered the price target from $235 to $200.

CRM Price Action: Salesforce shares are down 7.21% at $148.69 at time of publication, according to Benzinga Pro.

Photo: courtesy of Salesforce.