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salesforce.com, Inc. (NYSE:CRM) – The new face of commerce is not human

salesforce.com, Inc. (NYSE:CRM) – The new face of commerce is not human

Artificial intelligence (AI) is now part of everyday life. Digital assistants recognize your voice and respond to your commands. Computers help translate vast amounts of data into better-informed medical decisions. Chatbots offer you help with a human touch.

By the end of 2020, customers will manage 85% of their relationships with businesses without any human interaction.

The new face of commerce is not necessarily human

Through machines and software, AI can bring a decidedly human, personal touch while harnessing extraordinary computing power and information troves to better serve customers.

How is AI making commerce smarter?

  • Personalized experiences. AI enables merchants to tailor product recommendations based on purchasing patterns. Advertising can be targeted not only to meet individual preferences but also to appear at the right time and place. Ultimately, it will be possible to bring an enhanced purchasing experience — through digital assistants, analytics, and other tools — free to all customers.
  • Consultative selling. Sales teams can apply AI to Big Data analysis to better pinpoint opportunities, such as determining the best prospects for products. The ability of machines to learn will enable AI to move beyond the analysis of historical data to also perform predictive modeling and potentially to identify broader sets of sales opportunities.2
  • Service excellence. Customers can get answers more quickly and efficiently. For example, Einstein is an AI initiative at salesforce.com that’s helping customer service representatives better serve callers. As part of a cloud-based customer service platform, Einstein routes callers to the best available person for providing support and supplies background to the representative. Einstein helps management as well, by compiling data on wait times, queue sizes, and other details that support improvement of customer satisfaction scores.
  • Safer commerce. Security remains a major AI application and includes the ability to detect and thwart possible fraud attempts. The role of AI in fraud detection will continue to evolve to protect a connected network of businesses and homes from which purchasing can happen automatically.

Price Preformance

Relative Valuation

Shayne Heffernan Trade Idea

“If you’re looking for a leader in the area of tech-enabled customer relations management, look no further than Salesforce. This firm also excels in cloud computing and software as a service, also known as SaaS.”

CRM stockholders got a nice boost on Monday, no doubt about that. Is this enough to warrant a long position in the shares now?

  • The body is large and the wicks are small on Monday’s daily candlestick for CRM stock. This indicates that the buyers took the price and ran it up pretty much all day long.
  • There’s plenty of space between the CRM stock price and the three major moving averages on the chart. Therefore, no material threats to the bullish thesis can be found here.
  • On the other hand, CRM stock will likely test the $200 level at some point in the near future. Watch that number closely to see if the bulls really have what it takes to send the short sellers into hiding.

Why This Matters

A study by Tata Consultancy Services found IT departments are still the biggest adopters of AI today. However, one third of survey respondents expect that by 2020, AI will make the biggest impact on sales, marketing, and customer service. Another 20% see the largest influence on business functions such as finance, strategic planning, corporate development, and human resources.4

That means AI is becoming an agent of change well beyond its public surface, as it reaches more deeply into organizations to affect increasing aspects of the end-to-end transaction chain that drives commerce.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 164.81.

The projected upper bound is: 188.76.

The projected lower bound is: 144.89.

The projected closing price is: 166.83.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 36.5541. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.71. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 41 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 11. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 36 period(s) ago.

Rex Takasugi – TD Profile

SALESFORCE COM closed down -2.640 at 167.000. Volume was 15% below average (neutral) and Bollinger Bands were 6% wider than normal.

Open       High       Low        Close       Volume
168.440    168.440    164.580    167.000     1,474,123
Technical Outlook
Short Term:         Neutral
Intermediate Term:  Bullish
Long Term:          Bullish
Moving Averages: 10-period     50-period        200-period
Close:           168.74        153.55           159.88
Volatility:      59            95               54
Volume:          1,409,208     1,953,817        1,492,658

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

SALESFORCE COM is currently 4.5% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of CRM.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CRM.N and have had this outlook for the last 23 periods.

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