The first quarter of 2018 was a bumpy ride for the overall technology sector, thanks to the slew of bad news, which includes the Russian hacking of computers at the 2018 Olympics, data misuse scandal at Facebook (FB), and the first casualty by a driverless car. Despite a highly volatile market, Salesforce.
com, Inc. CRMis one such technology stock which marked a remarkable run in the first quarter of 2018.In fact, Salesforce’s shares appreciated 13.8% in Q1, substantially outperforming 5.4% growth recorded by the industry. The Technology Select Sector SPDR ETF’s XLKreturn was just 2.3%, and all major indices, including Dow Jones Industrial Average, NASDAQ Composite and S&P 500, ended the quarter in red. In the year-to-date period, the stock has gained 16.9%.
Salesforce is the fastest growing enterprise software company, which in fiscal 2018, achieved the milestone of $10-billion sales mark. Furthermore, looking at the company’s strong fundamental growth drivers, we are confident of its ability to reach the long-term target of $20-$22 billion in revenues by fiscal 2022.
Therefore, we believe the company has huge growth potential and investors should stay invested in the stock for better returns. Let’s look at the reasons behind this optimism.