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Why Salesforce Stock Soared 26% to a New All-Time High Today

By Joe Tenebruso – Aug 26, 2020 at 7:07PM

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The cloud titan delivered blockbuster second-quarter results.

What happened

Shares of salesforce.com (CRM -3.33%) rocketed 26% to a record high of $272.32 on Wednesday, following the release of the cloud computing leader's outstanding fiscal 2021 second-quarter results. 

So what

Despite the challenges presented by COVID-19, Salesforce's revenue climbed 29% year over year to $5.15 billion. The cloud software giant enjoyed broad-based growth across all of its business segments. Revenue in its sales, service, marketing/commerce, and platform divisions rose 13%, 20%, 21%, and 66%, respectively. 

A person points to an upwardly sloping line that glows at its apex.

Salesforce's stock surged on Wednesday. Image source: Getty Images.

Better still, Salesforce's adjusted earnings per share soared 118% to $1.44. Even after excluding a $0.58 gain on its strategic investments, the company's adjusted EPS still rose more than 30%.  

"It's humbling to have had one of the best quarters in Salesforce's history against the backdrop of multiple crises seriously affecting our communities around the world," CEO Marc Benioff said in a press release.

Now what

Salesforce is positioned to benefit from the digital transformation megatrend perhaps more than any other company. Companies of all sorts are adopting Salesforce's cloud-based software, which makes it easier to conduct business remotely. Salesforce is also a leader in areas such as data aggregation, integration, and visualization, which are growing increasingly important as companies seek to harness actionable insights from a wide variety of information sources. These powerful tailwinds are fueling Salesforce's growth, both today and likely well into the future.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Salesforce.com. The Motley Fool has a disclosure policy.

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