crm down 8-10% in the two to three weeks ahead of earnings.....down 20% on earnings.....down another 10% in the week or so after earnings. T

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Check out amzn to understand how this will trade. Crm is a topline driven stock still and as far as that goes they beat nicely and that's including a 10mln currency headwind. Only reason anyone is talking about the eps guidance being below street by 2c is because the stock dipped, and the only reason the stock dipped is because expectations i think where really high coming into the quarter. Considering the stock had rallied 25% in 3weeks a 4% move down on earnings is a cause for concern if you are short.

When crm's stock run ends it won't be on a 4% dip after earnings. It will be more like this....down 8-10% in the two to three weeks ahead of earnings.....down 20% on earnings.....down another 10% in the week or so after earnings. This reaction just indicates to me that the stock is pausing before it makes new highs. I would cover, and this is coming from a former crm shorter.

Aug 24 08:53 AM | 1 Like |Link to Comment