• SAP is exploring sale options for its stake in Qualtrics.
• Qualtrics’ market value amounts to $7 billion.
• Prices rose by nearly 33%.

Qualtrics International Inc. (NASDAQ: XM) is a provider of experience management (XM) platform to manage customers, employees, brands and product experiences. SAP (NYSE: SAP) which acquired XM in 2018, is weighing options to sell its remaining stake in the company. After publicly issuing shares post-acquisition, SAP held a 71% stake in the company. It is exploring selling options in a bid to cut costs.

Qualtrics is valued at $7 billion, which speaks volumes about XM’s image in the market. Qualtrics CEO Zig Serafin said the situation might be beneficial for the company. He said that this might be another step in their journey with SAP. Adding to it, he says it’s a win-win situation as it will let the company unlock new value for themselves as well as their shareholders.

Qualtrics reported its adjusted net income for the fourth quarter with EPS and revenue that beat the estimate. All the factors laid a trampoline for XM stock price, making it jump higher ranges.

Future prospects for Qualtrics

In the coming years, Data will be the new Oil. It fuels the working of all tech systems and can be offered as a product. Data Mesh is a paradigm transition in data management. Data as a product is essential for innovation culture where data is readily and safely available for secondary use.

One of the facilities provided by Qualtrics is conducting surveys. Using it to its benefit, the company can enter into providing data as a product and become the epitome of an authentic data source.

Amazon Web Services and Qualtrics collaborated to provide users with elite cloud facilities. By pursuing the same path, the company can master the segment of cloud computing. In the future, AI will be deployed to facilitate cloud architecture. Taking the early bird advantage, XM can develop services that bridge today with tomorrow. 

XM stock price analysis

The XM stock price repelled the regression channel. The channel showed a regular uptrend. However, it faced overwhelmed sentiments with the price opening at $14.90. The volume shows investors flooding the market to buy the stock. The stock prices may face sellers resistance near $15.48, but if breached, can reach close to $16.50.

The MACD recorded a tall buyer bar, while the lines diverged for the approaching bulls. The RSI went straight up into the overbought zone to mirror the buyer-dominance. The 20-day EMA lies below the price action, showing bullish indications. All bullish signals suggest the price rally may continue till the selling is finalized. The reported earning and revenue for the fourth-quarter, with EPS of $0.03, was higher than the estimated $0.02. Revenue for the quarter was revealed at $389.1 million, with respect to the estimate of $380.77 million. This surprise in the reports amplified the price surge. 

Conclusion

The experience management company, Qualtrics Inc., aims to revolutionize the market for cloud computing and data storages. The management of the company anticipates selling options will benefit the company’s image as its market valuation will lift the company’s position in the industry.

Technical levels

Support levels: $9.43 and $8.04

Resistance levels: $15.48 and $17.52

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew Smith

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.