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Salesforce & Square Q4 Earnings Previews: Buy the Tech Stocks for Secular Growth?


On today’s episode of Full Court Finance here at Zacks, Ben Rains dives into what investors can expect from Salesforce CRM and Square SQ ahead of their upcoming fourth quarter earnings releases. Both stocks had been on strong runs in 2020, until the recent market pullback. So, is now the time to buy either of the two growth-focused tech stocks?

The Dow, S&P 500, and the Nasdaq all plummeted over 3.3% through morning trading Monday, with the tech-heavy Nasdaq down nearly 4%. This market pullback comes as the coronavirus spreads outside of China more quickly, highlighted by South Korea, Italy, and Iran. Monday’s decline comes a week after Apple AAPL sent a warning signal to Wall Street regarding the Chinese economy.

The significant downturn hit Salesforce and Square, which had both been on solid runs in 2020 after what were rough years in 2019, based on their own lofty standards. 

Salesforce is set to release its Q4 fiscal 2020 financial results after the market closes on Tuesday, February 25. CRM shares have surged 125% in the last three years to crush its industry’s average that includes Adobe ADBE, Oracle ORCL, VMware VMW, Intuit INTU, and others.

Salesforce executives said last quarter that the firm is on track to double its revenue in five years. This growth comes as more business, big and small, digitalize their offerings.

Square is scheduled to report its Q4 fiscal 2019 earnings after the closing bell on Wednesday, February 26. SQ has expanded its portfolio in recent years to better compete against the likes of JPMorgan Chase JPM, PayPal PYPL, and others. The fintech firm is expected to continue to grow as part of a broader industry climb and it has tried to address some of Wall Street’s profit concerns more recently.

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JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
VMware, Inc. (VMW): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Intuit Inc. (INTU): Free Stock Analysis Report
Adobe Systems Incorporated (ADBE): Free Stock Analysis Report, inc. (CRM): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Square, Inc. (SQ): Free Stock Analysis Report
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