Salesforce.com Inc (CRM)
Salesforce.com, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management (CRM) service and also provides a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 61.85% per annum.
- CRM price at the close of April 26, 2024 was $274.29 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 54.24% per annum.
- CRM price at the close of April 26, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of CRM price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: September 15, 2022
End date: April 26, 2024
a = 3.3004
b = 0.0013
s = 0.0810
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 61.85%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0810) – 1
= 38.26%
September 15, 2022 calculations
Top border of price channel:
Exp(Y853)
= Exp(a + b × X853 + 2 × s)
= Exp(a + b × 1,235 + 2 × s)
= Exp(3.3004 + 0.0013 × 1,235 + 2 × 0.0810)
= Exp(5.0915)
= $162.64
Bottom border of price channel:
Exp(Y853)
= Exp(a + b × X853 – 2 × s)
= Exp(a + b × 1,235 – 2 × s)
= Exp(3.3004 + 0.0013 × 1,235 – 2 × 0.0810)
= Exp(4.7676)
= $117.63
April 26, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.3004 + 0.0013 × 1,824 + 2 × 0.0810)
= Exp(5.8685)
= $353.73
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.3004 + 0.0013 × 1,824 – 2 × 0.0810)
= Exp(5.5446)
= $255.85
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 61.85% per annum.
- CRM price at the close of April 26, 2024 was $274.29 and was inside the primary price channel.
Secondary Trend
Start date: February 29, 2024
End date: April 26, 2024
a = 9.5376
b = -0.0021
s = 0.0276
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0021) – 1
= -54.24%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0276) – 1
= 11.68%
February 29, 2024 calculations
Top border of price channel:
Exp(Y1,218)
= Exp(a + b × X1,218 + 2 × s)
= Exp(a + b × 1,767 + 2 × s)
= Exp(9.5376 + -0.0021 × 1,767 + 2 × 0.0276)
= Exp(5.8078)
= $332.89
Bottom border of price channel:
Exp(Y1,218)
= Exp(a + b × X1,218 – 2 × s)
= Exp(a + b × 1,767 – 2 × s)
= Exp(9.5376 + -0.0021 × 1,767 – 2 × 0.0276)
= Exp(5.6974)
= $298.08
April 26, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(9.5376 + -0.0021 × 1,824 + 2 × 0.0276)
= Exp(5.6857)
= $294.63
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(9.5376 + -0.0021 × 1,824 – 2 × 0.0276)
= Exp(5.5753)
= $263.82
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 54.24% per annum.
- CRM price at the close of April 26, 2024 was inside the secondary price channel.