Why Salesforce's Earnings Report Could Reverse The Underperformance Of The Stock

Salesforce.com Inc CRM is set to report its second-quarter fiscal 2022 financial results after the market closes on Wednesday.

The Salesforce quarterly report has the potential to reverse the year-to-date underperformance of the stock, Virtus Investment Partners' Joe Terranova said Wednesday on CNBC's "Fast Money Halftime Report."

Salesforce has traded below its 52-week high for nearly 11 months, Terranova said: "This is the moment now where you're going to see a realization that the contribution from Slack is better than we expected."

Salesforce completed its acquisition of Slack Technologies on July 21.

Amazon.com Inc AMZN and Microsoft Corp MSFT reported increasing enterprise IT spend during their most recent earnings results, he said.

It's a clear catalyst for all of the cloud names and it's clearly going to be a catalyst for Salesforce, Terranova emphasized.

Salesforce CEO Marc Benioff will discuss the company's financial results with Jim Cramer on "Mad Money" tonight.

CRM Price Action: Salesforce has traded as high as $284.50 and as low as $201.51 over a 52-week period.

The stock was up 0.48% at $260.91.

Photo: courtesy of Salesforce.