Salesforce stock surges more than 25%, lifting software sector

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Shares of Salesforce.com Inc. are up 28% in Wednesday morning trading after the software company reported better-than-expected fiscal second-quarter results and gave an upbeat outlook for the full year. “While management is taking a balanced view on guidance, we sensed an optimistic tone on the spending environment as businesses prioritize digital projects and tech spending wherever possible,” wrote William Blair analyst Arjun Bhatia. “The company mentioned a demand environment that was consistent with historical normal levels, even while we are in the middle of a pandemic.” The momentum for Salesforce, which is due to join the Dow Jones Industrial Average by the end of the month, is helping to lift other software names as well. Shares of Workday Inc. , Zuora Inc. , and Smartsheet Inc. are up more than 8% in the session while shares of Okta Inc. are up about 5%. The iShares Expanded Tech Software ETF is up 3.8%. Salesforce shares have risen 53% in the past three months as the S&P 500 has gained 15%.
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