Salesforce's most recent trend suggests a bullish bias. One trading opportunity on Salesforce is a Bull Put Spread using a strike $150.00 short put and a strike $140.00 long put offers a potential 18.62% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $150.00 by expiration. The full premium credit of $1.57 would be kept by the premium seller. The risk of $8.43 would be incurred if the stock dropped below the $140.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Salesforce is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Salesforce is bullish.
The RSI indicator is at 68.53 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Salesforce
Google, Salesforce Invest in U.K. Payments Startup GoCardless
Mon, 18 Feb 2019 05:00:00 +0000
The financing is being led by Adams Street Partners, GV, formerly known as Google Ventures, and Salesforce Ventures, GoCardless said in a statement. Existing investors Accel Partners, Balderton Capital, Notion Capital and Passion Capital are also participating.
Nvidia Reaction Speaks Volumes — Here’s How To Trade It
Fri, 15 Feb 2019 19:06:54 +0000
In the past two years, there has been a battle between new and old tech. Old dogs like Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE) needed to learn new tricks in order to compete in this new tech era where companies like Salesforce.com (NYSE:CRM) and Amazon (NASDAQ:AMZN) are all the rage. The aforementioned two did but some like IBM (NASDAQ:IBM) still are trying to make the turn. The cloud is where all tech wants to be.Nvdia (NASDAQ:NVDA) skirts the line between the new and the old tech. Last year, it caught the attention of Wall Street as the new king of the chip jungle. But since its peak of $290 per share last October, it got cut in more than half. And even through yesterday, not many were suggesting any reason to own it. This, to me, was a sign to dip my toe in the Nvidia stock waters.When management guided down in January, they set the default consensus that NVDA stock is doomed, so they caused the stock to run out of incremental sellers. This is the same as saying that the weak hands are all out already. When that happens, usually a stock will need significantly worse new reasons to fall further.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThis notion is proven right today, as the stock is rallying on relatively bad news. Last night NVDA reported earnings and they missed on a few metrics, yet they beat on revenue and earnings, and the stock rose on the headline. Investors now believe that they are rectifying the sales mix that plagued them last year. * 10 Hot Stocks Leading the Market's Blitz Higher Fundamentally, Nvidia stock at $290 was very frothy. But when it fell from grace, it became a bargain compared to what it was before. It now sports a trailing-12-months price-to-earnings ratio of 21 and for a growth company that is very reasonable. Compare this to Netflix (NASDAQ:NFLX), AMZN or Chipotle (NYSE:CMG). These wall street darlings' P/E are 133, 80 and 96 respectively.If you compare NVDA to its competitors, it is twice as expensive as Intel (NASDAQ:INTC) but more than three times cheaper than Advanced Micro Devices (NASDAQ:AMD). So any which way you consider it, it's not grossly over priced. Owning it here means that I would be buying value for it to appreciate over time.Part of what caused its demise was its ties to the Crypto-craze of 2018. Speculators used its chips to mine bitcoins and other Crypto-currencies. But since the prices of those collapsed, that made mining them a losing proposition. NVDA suffered sales mix issues that dragged sentiment down as a whole. Add to this that overall the markets last year were hideous then it was normal to over-react on the downside just like they did on the upside.By now, these ties to bitcoin are dead and traders can fall back in love with NVDA's core competency once more. This is a momentum stock, as you can clearly see from the 12-month price range, so it won't give us clear entry points. All I know is that over time, stocks of quality companies will rise. So this is a relatively safe spot to buy a starter position of NVDA stock. If I already own it, depending on my base price I could add to it to average down.For those who use options, I like to sell puts below support levels to generate income. This means that I commit to buying the shares below and if it indeed falls then I buy them at that price. Otherwise I would have generated income out of thin air.Another way to use options is to sell covered calls. So if I own shares I can create my own dividends. This hedges my longs a bit by betting against my asset. Some even like to buy the shares for the purpose of writing calls against them.The bottom line is that Nvida is a great American company and it is working its way back into Wall Street's favor. Currently there are a lot of analysts who have a "hold" rating on the stock, so some of them may want to rejoin the bull herd and upgrade the stock. It currently trades well below their average price target around $188.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post Nvidia Reaction Speaks Volumes — Here's How To Trade It appeared first on InvestorPlace.
Netflix Stock Is All About The Innovator’s Dilemma
Fri, 15 Feb 2019 17:45:46 +0000
The rally since the December lows has certainly been impressive. But as for Netflix (NASDAQ:NFLX), it has made this bull move look kind of tame. Since late December, the shares have soared from $234 to $360 — or about 53%.Source: Netflix Now, NFLX stock has a pretty good track record anyway. Consider that for the past decade the average annual return has been a blistering 51.8%!This really goes to how important major changes can be with large markets. It's essentially about the innovator's dilemma — a concept developed by Harvard professor and entrepreneur Clayton Christensen in the 1990s — where the incumbents cannot react quickly enough. The main reason is fear of cannibalizing the existing business.InvestorPlace – Stock Market News, Stock Advice & Trading TipsBut this can prove fatal. Over the years, we've seen how industries can be disrupted, such as with Amazon.com (NASDAQ:AMZN) in e-commerce, Uber with the taxi cab business and Salesforce.com (NYSE:CRM) with enterprise software.With Netflix stock, the main catalysts for the disruption opportunity have been the availability of high-speed internet access and pervasiveness of smartphones. But there has also been a move towards affordable subscriptions. The result is a secular change in how people consume entertainment content. * 10 Hot Stocks Leading the Market's Blitz Higher The trend is clearly evident with cord-cutting. According to research from eMarketer, about 50 million Americans will abandon cable and satellite TV by 2021, up from 20 million this year.By being a first mover, Netflix has some significant competitive advantages that should last for quite some time. The company's name has become of top-of-mind for streaming. The company also has a lead in critical areas like AI, which has allowed for more effective content creation. And yes, there is the scale of the user base. There are currently about 139 million subscribers across 190 countries. In other words, Netflix is winning the "land grab" of the streaming opportunity.To put things into perspective, look at some of the findings from Lab42, a market research firm. About 89% of streaming subscribers are customers of Netflix and the renewal rate is 93%. By comparison, AMZN's is at 75% and Hulu's is 64%.With high levels of customer loyalty, NFLX has been able to build a substantial recurring revenue stream. It also means the company is in a position to periodically increase the pricing. Bottom Line On Netflix StockNo doubt, there are notable risk factors for Netflix stock. The competitive environment is getting more intense. Some of the rivals include Disney (NYSE:DIS), CBS (NYSE:CBS), Amazon, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Apple (NASDAQ:AAPL).Although, interestingly enough, the most recent Netflix shareholder letter notes that the wildly popular game, Fortnite, is much more of a competitor! The reason is that it is essentially a big draw on people's attention.Another nagging issue is that content development can be dicey. Even with the power of analytics, there could still be a string of flops. Zynga (NASDAQ:ZNGA) is definitely an example of this. Despite having a large user base and large amounts of data, it has had a tough time creating engaging new titles.But for NFLX, there are few signs that the company is losing its touch in creating standout content. For example, its movie Bird Box has been streamed in 80 million homes.True, Netflix stock is far from cheap, with the forward price-to-earnings ratio at 54X. But then again, as we've seen over the years, this hasn't been much of a factor anyway, especially as the company should remain a leader in the disruption of the entertainment market.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post Netflix Stock Is All About The Innovatoras Dilemma appeared first on InvestorPlace.
Big hedge funds dumped China stocks, Apple as market tumbled
Fri, 15 Feb 2019 00:21:14 +0000
Prominent hedge fund managers sold out of Chinese technology stocks and dumped Silicon Valley majors such as Apple Inc and Facebook Inc while global stock markets cratered during the fourth quarter, according to securities filings released on Thursday. Activist hedge fund Jana Partners sold out of its position in major Chinese e-commerce company Alibaba Group Holding Ltd and reduced its stake in Apple by approximately 175,000 shares, slicing its position in the company by 63 percent. Warren Buffett's Berkshire Hathaway Inc shrank its Apple stake to 249.6 million shares from 252.5 million shares in the fourth quarter.
SugarCRM hires new CEO, eyes growth through M&A
Thu, 14 Feb 2019 14:55:37 +0000
The new CEO of the Cupertino customer relationship software business previously ran two other Accel-KKR portfolio companies that the private equity firm sold in 2017 and 2018.
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