Salesforce is having its best day since 2020 after blowout earnings report

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Salesforce beat estimates on Wednesday, and activist investor Elliott Management was complimentary after the company showed margin improvement.

The results show the company, led by co-founder Marc Benioff, is making concessions to activist investors who have built stakes in the business and raised concerns lately about the company's revenue and income performance.

Alongside the earnings report, Salesforce said it's working with Bain on a business review, and the company announced the elimination of the board's committee on mergers and acquisitions. That prompted praise from prominent activist Elliott Management, which announced a stake in the company in January.

"These steps are consistent with our recommendations, and we believe they will help restore value at Salesforce," Elliott's Jesse Cohn and Jason Genrich said in aSalesforce also beat on fourth-quarter revenue, reporting 14% year-over-year growth to $8.38 billion, topping the average analyst estimate of $7.99 billion, according to Refinitiv.

Rangan, who recommends buying the stock, raised his 12-month price target for the second time in a week after the report. More than two dozen other analysts increased their targets as well. The new average price target, at $213.02, is about 15% higher than where the stock was trading on Thursday.

 

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