Salesforce.com (CRM)

[winston]

not vested

Credit Suisse (Outperform rating, $245 PT maintained)

"While the $27.7bn Slack acquisition was telegraphed last week by the media, the final size/consideration/valuation, a longer-than-expected time to close and lack of clarity around financial implications were disappointing.

The stated rationale 'as the operating system for the new way to work' and vision to enhance Customer 360 largely jive with our take...but timing (3 months after publicly talking down M&A, and before Tableau is completely integrated) and final deal structure (no WORK go-shop period) will make it challenging even for bulls to fully digest.

- Brad Zelnick

[winston]

not vested

Citi (Downgraded to neutral from buy, PT lowered to $250 from $300)

"We are downgrading shares to Neutral and lowering our PT to $250 based on unchanged 38x FY’23E FCFF [free cash flow to the firm], where our estimates have drifted lower.

While we’ve liked the durable growth driver here, favorable front-office market trends and multi-product SaaS, the Slack acquisition stretches our conviction.

History suggests that the stock has had challenges with multiple de-ratings after large acquisitions and we expect this deal will make this more likely."

- Walter Pritchard

[winston]

not vested

Are Microsoft And Adobe Coming For Salesforce's Market Share?

Customer relationship management is a new frontier for two traditional tech companies.

by Corinne Cardina

Source: TMF

https://www.fool.com/investing/2020/12/ ... orces-mar/

[winston]

not vested

December 2, 2020

Salesforce (CRM) Q3 Earnings & Revenues Top Estimates, Up Y/Y

The company’s fiscal third-quarter non-GAAP earnings of $1.74 per share handily beat the Zacks Consensus Estimate of 74 cents.

Quarterly earnings soared 132% year over year mainly on higher revenues and a benefit of 86 cents per share from mark-to-mark accounting required by ASU 2016-01.

Salesforce’s quarterly revenues of $5.42 billion climbed 20%, year on year, surpassing the Zacks Consensus Estimate of $5.25 billion.

Source: Zacks Equity Research

https://finance.yahoo.com/news/salesfor ... 12806.html

[winston]

vested

Salesforce’s Marc Benioff on goal to double revenue — ‘Slack changes everything’

by Tyler Clifford

Source: CNBC

https://www.cnbc.com/2020/12/01/marc-be ... venue.html

[winston]

not vested

Salesforce could more than double its valuation after $27.7 billion deal for Slack, Jim Cramer says

by Tyler Clifford

Salesforce, which was added to the 30-stock Dow Jones Industrial Average this summer, peaked at $284.50 in early September, days after it joined the blue-chip index.

Source: CNBC

https://www.cnbc.com/2020/12/03/cramer- ... -deal.html

[winston]

vested

The Slack deal may have been expensive, but the cash-and-stock deal still had a valuation of roughly $28 billion (and actually less at the current CRM stock price).

Salesforce has lost nearly $20 billion in market capitalization just since the deal was announced.

Source: Investor Place

[winston]

Is Salesforce Stock A Buy? Slack Deal Renews Debate Over Organic Growth, Margins

by REINHARDT KRAUSE

Microsoft's Dynamics has gained traction as a lower-priced alternative to Salesforce tools.

Salesforce said it aims to double revenue to $50 billion by 2026, including a $4 billion contribution from Slack.

Source: IBD

https://www.investors.com/news/technolo ... src=A00220

[winston]

vested

5 Best Tech Stocks for 2021

by Jon Markman

I began recommending Salesforce (CRM) in 2009. The $210 billion company is best known for its suite of cloud-based customer relationship management tools.

For most large enterprises, CRM is a digital transformation jumping-off point. It helps them digitally manage customer service, sales leads, marketing and commerce, all on one platform.

Salesforce operates a thriving ecosystem with third-party developers building custom software for specific applications. It is the best place for enterprises to dip their toe in a CRM marketplace.

In early December, the San Francisco, Calif.-based company announced the $27.5 billion acquisition of Slack (WORK), a maker of communication software.

Salesforce shares promptly lost 18%. The same day, the company reported fiscal 2021 third quarter sales of $5.4 billion, up 20% year-over-year.

Managers predict full-year revenues should top $21 billion, up 23%. It’s rare investors get an opportunity to buy a great business on the cheap.

Source: The Street

[winston]

vested

Salesforce

Salesforce.com Inc. (NYSE: CRM) stock has added almost 39% for the year to date.

For the current (2021) fiscal year, analysts expect EPS of $4.64, a jump of 55% from the year ended in September.

The outlook for 2022 EPS drops, however, by nearly a quarter to $3.50.

The projected drop may be related to the company’s $27.7 billion acquisition of Slack Technologies.

Shares traded recently at around $227, implying a potential upside of around 21% to a price target of $275.

The stock trades at more than 78 times expected 2022 EPS and its 52-week range is $115.29 to $284.50.

Source: 24/7 Wall Street