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Though many analysts are defending Salesforce.com (CRM -10.9%) following yesterday's FQ3 report...

Though many analysts are defending Salesforce.com (CRM -10.9%) following yesterday's FQ3 report (I, II), JPMorgan's John DiFucci isn't one of them, lowering his PT to $115 in a report titled "Slowing Business Momentum." DiFucci, who asked a pointed question during Salesforce's earnings call, is concerned about the fact new subscription billings growth dropped to just 12% Y/Y, well below a 34% consensus.
Comments (2)
  • Josh Krause
    , contributor
    Comments (1361) | Send Message
     
    The first cracks are starting to form in CRM.

     

    Slowing sales when two huge competitors are actively trying to steal your competitors and crowd you out of the market? Who could have seen that coming?

     

    Add in the fact that CRM can't post a profit without aggressive accounting and stock dilution through massive stock option awards.

     

    Will be interesting to see what happens when all the sales people realize that their stock options are going to expire worthless if the stock continues to trend down.

     

    Mass exodus of sales people to the competition? Possible in the medium to long term.
    18 Nov 2011, 04:44 PM Reply Like
  • mP1
    , contributor
    Comments (386) | Send Message
     
    Not a good time to implode given the EZ...
    18 Nov 2011, 04:47 PM Reply Like
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