Marc Benioff‘s Salesforce (NASDAQ:CRM) will be in the spotlight this week when it publishes its financial results on Wednesday. The stock has formed a highly bullish pattern, raising the possibility of a post-earnings rebound.

Salesforce Stock In Focus As It Publishes Q1 Earnings

Salesforce, the biggest company in the Customer Relationship Management (CRM) industry, has come under pressure in the past few months amid the ongoing SaaSpocalypse fears. SaaSpocalypse is a new word referring to how companies in the software industry will be disrupted by AI tools. 

CRM stock has plunged by over 50% from its highest point last year, with its market capitalization falling from $347 billion to $147 billion today.

The company will have a chance to prove naysayers wrong when it publishes its results. Benzinga data shows that analysts expect its revenue rose by 12.48% in the first quarter to $11.06 billion. 

While this revenue growth is encouraging, it will also include figures from Informatica, which it acquired last year. For a long time, Salesforce has been accused of focusing on growth through acquisitions, with some of its buyouts like Quip flopping.

Salesforce has a long history of beating analysts’ estimates in terms of revenue and profits. It also tends to provide estimates that are better than those expected. In this case, estimates are that its second-quarter revenue will jump by 11% YoY to $11.36 billion.

The results will also provide more color on how its AI business is doing. In its most recent results, the company said that its Agentforce and Data 360 annual recurring revenue rose 200% YoY to $2.9 billion.

Analysts have mixed opinions about the CRM stock price. In a recent note, analysts at UBS maintained their bullish view, but lowered their target from $200 to $185. Bank of America maintained the $160 target, warning that it was facing an AI shakeup. Citigroup slashed its target to $188. Still, the consensus Salesforce target among analysts is $273, much higher than where it is today.

CRM Stock Has Flashed An Inverted Head & Shoulders Pattern

Salesforce shares have jumped a bit, moving from the year-to-date low of $162.3 to the current $180. It is now attempting to cross the 25-day moving average.

On the positive side, the stock has formed an inverted head-and-shoulders pattern and is slowly approaching the neckline. This pattern normally leads to more gains in the long-term. 

A bullish breakout is usually confirmed when it moves above the neckline. If this happens, the stock may jump to the psychological level of $200. 

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