Cloud-based business software titan Salesforce (NYSE:) brought in hefty gains on Thursday.

Why are these gains so significant? The best reason for the latest gains? Improved guidance. Tools like Salesforce’s are becoming more valuable in a cloud-based market. This has made me a big fan of Salesforce.

The year has been wild for Salesforce stock. Salesforce stock has seen a wild year. Its share price fell to $200 and reached $280. (See Salesforce stock charts on TipRanks)

The latest news served nicely to give Salesforce another upward push. The company originally projected revenue between $26.2 billion to $26.3 billion in Fiscal Year 2022. According to revised estimates, revenues for 2022 will be between $26.2 billion and $26.3 billion. While the uptick may not be significant given all the facts, it’s still quite a solid result.

Wall Street’s Take

Wall Street consensus analysis calls Salesforce a Strong Buy, based on 31 Buys, and six Holds. A CRM average price target of $317.34 indicates upside potential for 11%

Growing Cloud-Based Market

If 2020 taught us anything, it’s how absolutely vital an online presence is. Online presence is essential, whether you’re selling customers or connecting employees.

Even though Marissa Mayer, an influential naysayer at the top of the corporate ladder, said that telecommuting is possible in 2020. It was clear in 2020 that even if employees never leave the workplace, companies can still survive.

However, proper telecommuting works better when you have the right tools. Salesforce currently rides this premise to great investor success. Salesforce’s offerings are needed in a growing market with increasing demand for tools such as automation and artificial Intelligence at Work.

Salesforce continues to expand its product offerings. Slack’s recent acquisition certainly helped matters. A large percentage of employees turned to Slack for meeting facilitation.

Salesforce is always in the forefront of its clients’ minds and customers are able to find new ways to improve their Salesforce experience.

Concluding Views

Salesforce shares are pricey right now. The company also boasts a large customer base who have seen firsthand how important Salesforce systems can be to ensuring that businesses are able to continue operating in the event of lockdowns.

Remote work is something companies won’t be able to stop even without an epidemic.

Salesforce has a compelling proposition, which will likely lead to better outcomes, so you should get on board now to take advantage of the increasing remote work trend.

Disclosure: Steve Anderson didn’t hold any positions in the securities discussed in this article at the time it was published.

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