At 10 PM CET last night, Salesforce delivered Q1 numbers. Revenue $9.83 billion, +7.6% YoY, EPS $2.58 versus $2.55 expected. A clean beat. The stock responds with +4.2% in after-hours trading.
But the more interesting part is the discount window. Salesforce trades at $178 today — 35% below the all-time high of $278 from October 2025. Analysts see $275 as fair value on average. That's 54% upside from current levels.
The AI Platform Is Growing 3x Faster
Data Cloud and Agentforce — Salesforce's AI tooling — reached $1 billion in annual recurring revenue in Q1. Growth: +120% YoY. Since launch, Agentforce has closed 8,000 deals. This is no longer sandbox experimentation, this is enterprise-grade.
The guidance raise speaks volumes: Salesforce lifts full-year revenue outlook by $400 million to $41.3 billion. That's not defensive management, that's conviction.
What the Options Show
Call/Put ratio at 1.31 — mildly bullish, no hype. Implied volatility sits at 48% on ATM calls with June expiry. That's fair for a company delivering AI traction. The 216,570 contracts traded yesterday were 57% calls.
Anyone entering here could consider a bull call spread 180/200 for July: limited risk, solid leverage if the stock runs toward 200. With IV at 48% and current price $178, that's a fair premium.
What Traders Are Watching Now
Next resistance sits at $190 — that was support in April. If Salesforce closes above $190, the path clears toward $210. Short interest stands at 7.94%, which is moderate.
Earnings are done. The guidance raise is in. AI momentum is real. Betting on Salesforce isn't betting on hope, it's betting on numbers.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.