If analysts are worried about Salesforce's disappointing revenue forecast, they aren't showing it. Most remain bullish and undeterred after the company reported strong fourth quarter earnings after the bell on Monday.
Shares of the stock were down as much as 3 percent after the report but have rebounded slightly and are now down just over 1 percent in early trading to $155.94. However, Salesforce stock is also up a whopping 30 percent over the last year.
Salesforce CEO Marc Benioff said on, "Mad Money with Jim Cramer," that "I still have never been more excited about Salesforce than I am right now."
UBS analyst Jennifer Lowe noted the shares sold off after the lower first quarter revenue guidance and fourth quarter results "that were solid but didn't deliver the same level of blowout we saw last Q4."
The dip in Salesforce's stock continues a pattern Bernstein's Mark Moerdler has seen where four of his covered companies reported strong quarters but then sold off. "We believe this could be a signal of some investor fatigue in growth software given the run YTD and over the past few years," he said.
BMO's Keith Bachman wondered if software stocks are "poised to take a breather," noting recent "strong prints by Workday, Splunk and VMWare have been met largely with investor apathy, given current valuation levels."
"While the stock pulled back in the after hours, we continue to see CRM as one of the best positioned companies in software," said Goldman Sachs analyst Heather Bellini.
Deutsche Bank analyst Karl Keirstead reaffirmed his buy, raised his price target, and summed it up by saying, "impressive for a company about to hit its 20th birthday."
Here's what else the analysts are saying: