Salesforce (CRM) Soars 5.56% in Three Days on AI Investment, Trade Optimism

Salesforce (CRM) shares rose 0.54% today, marking the third consecutive day of gains, with a total increase of 5.56% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 2.38%.

The strategy of buying CRM shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.07% annualized return and a 42.65% total return as of the latest data point. However, the strategy underperformed the broader market, as evidenced by the 15.87% annualized return and 65.79% total return of the S&P 500 Index over the same period. The Sharpe ratio of 0.56 also indicated that the strategy carried moderate risk-adjusted returns, suggesting that while the strategy provided decent returns, it was not exceptionally advantageous compared to simply holding the market index..

Salesforce's recent investment of $500 million in Saudi Arabia's AI expansion, including the establishment of a new headquarters in Riyadh, has positively influenced investor sentiment. This strategic move is seen as a significant step towards capitalizing on the growing opportunities in the AI sector, which is expected to drive future growth for the company.

In addition to its AI investments, Salesforce's stock has benefited from broader market optimism and progress in U.S.-China trade negotiations since late April. These developments have boosted overall market sentiment, contributing to the company's recent stock performance.

Furthermore, the expansion and strengthening of Salesforce's Sales Cloud offering are identified as key drivers of its growth strategy. Analysts, including those from Bank of America Securities, have highlighted the potential of this offering to drive future growth, signaling positive prospects for the company.