As Salesforce gears up for its highly-anticipated annual Dreamforce conference, investors and market analysts are turning their attention to the event’s historical impact on Salesforce stock and the broader S&P 500 tech sector.
Salesforce: The Pre-Dreamforce Bull Run
The San Francisco-based software giant, known for its customer relationship management (CRM) solutions, has seen its stock outperform many in the S&P 500 tech sector this year, with an impressive 69% rally year-to-date. Interestingly, historical trends suggest that Salesforce stock often ascends in the months leading up to the Dreamforce event. Furthermore, the stock typically receives a short-term boost just as the conference is about to kick off.
Intraday Swings During the Dreamforce Period
Once the conference is underway, Salesforce stock has shown an average uptick of 1.24% over the course of the 3-4 day event. However, this post-kickoff gain tends to be temporary, often retracting during the week that follows the conclusion of Dreamforce.
Source: BESPOKE
The Broader Tech Sector: Measured by the XLK ETF
For a more holistic market perspective, the Technology Select Sector ETF (XLK), a representative of the broader S&P 500 tech sector, has also been observed to benefit in the half-year leading up to Dreamforce, recording gains 80% of the time. However, this optimistic outlook slightly reverses once the conference commences. The tech sector has averaged a small decline of 0.15% during the event, with the dip often extending to a 0.65% loss in the week following the conference.
Source: BESPOKE
Post-Dreamforce: A Mixed Bag for Salesforce and Tech Sector
While Salesforce stock has generally dipped in the three months following Dreamforce for the past three years, the tech sector, as measured by XLK, tends to show resilience and average gains at the 1, 3, and 6-month intervals after the conference wraps up.
