Yesterday, 3:32 PM
- With Salesforce (reportedly working with Bank of America) (CRM -0.2%), Alphabet (GOOG, GOOGL) and The Walt Disney Co. (DIS -1.3%) rumored to be in the mix, Twitter (NYSE:TWTR) is said to be gearing up to present itself to potential acquirers.
- While a bid by Salesforce is seen as unlikely and unfavorable by some (Citi, Morgan Stanley), last Friday it appeared firmly in the mx. Alphabet, meanwhile, is considered a favorite by others, with the available cash, advertising expertise and social network tie-in possibilities to make Twitter work under a new parent organization. Now that Disney is the latest to reportedly join the group, sports, distribution and video prospects are being weighed.
- Trading up more mildly than Friday's run on this development, it appears analysts, investors and Twitter itself are unsure of what direction the company will take next. The negative reaction of Salesforce shares on Friday and Disney shares today, though, may signal difficulty in attaining favorable terms for all parties involved in a deal should one come closer to materialization.
- Update (3:41 PM ET): CNBC's David Faber adds Microsoft (MSFT -0.8%) in as a potential bidder.
Yesterday, 1:11 PM
- Citi's Walter Pritchard expressed like sentiment regarding a hypothetical Salesforce buyout of Twitter last Friday.
- Morgan Stanley's Keith Weiss today cites "an inability to see revenue synergies from the combination."
- Further: "Frankly, we struggle to see any near-term revenue opportunities from the combination of Salesforce.com and Twitter that aren’t available today via the current partnership – i.e . social listening/social media management. Vala’s list, while interesting potential opportunities for Twitter, seem to have limited adjacency to the current Salesforce.com solutions portfolio or core customer base. Even the longer-term value add of some insights yielded from Twitter data via Salesforce.com’s developing AI capabilities is difficult for us to see. Predictive marketing capabilities in the Marketing Cloud? Insight into how to better sell to Twitter users?"
- Weiss assumes a $14B-$17B theoretical acquisition range should Salesforce (CRM -0.7%) pursue Twitter (TWTR -3.1%) (based on 5x-7x average forward EV/sales of similar Salesforce transactions).
- Retains Salesforce at Overweight with a $107 price target (current price $69.94).
Fri, Sep. 23, 1:03 PM
- With Twitter (TWTR +18.2%) and Salesforce (CRM -5.3%) trading in opposite directions on today's buzz, Citi's Walter Pritchard states his position that the likelihood of a deal between the two is low and doesn't like the opportunity for Salesforce should one materialize.
- Pritchard: "While Twitter is involved in the customer service process, we don’t believe it is necessary for salesforce to own Twitter to be able to use it as a medium for customer service. Also, we don’t believe that if someone else bought Twitter, salesforce would be prevented from using Twitter as they do today. Our response, if CRM were to buy TWTR, would be negative. Twitter is profitable and while back of the envelope the deal might not be dilutive, we believe it would fuel concerns that CRM is de-focusing on for “customer” area in a quest to stretch for growth."
- Maintains a Buy rating on Salesforce amid the speculation.
Fri, Sep. 23, 10:18 AM| Fri, Sep. 23, 10:18 AM | 29 Comments
Fri, Sep. 23, 9:06 AM| Fri, Sep. 23, 9:06 AM | 100 Comments
Thu, Sep. 22, 9:33 AM
- Solutions to be developed by both companies to bring Salesforce's (CRM +1.2%) Sales Cloud, IoT Cloud and Service cloud together with Cisco Systems' (CSCO +0.5%) collaboration, IoT and contact center platforms.
- Connected device and customer experience use cases highlighted.
- Cisco: "Our goal is for technology to fade into the background so people can get their best work done. Cisco and Salesforce coming together to form a strategic alliance can eliminate the friction users experience today so they can become more productive."
- Salesforce: "Nothing is more important than making our customers more successful. We're thrilled to announce this strategic alliance with Cisco, which will simplify the customer experience across sales, service and IoT and empower our mutual customers to be far more productive."
- Collaboration and IoT integrations to become in available in H2 2017 with Cisco Unified Contact Center Enterprise and Salesforce Service cloud integrations available today.
Mon, Sep. 19, 2:16 AM
- Salesforce.com (NYSE:CRM) is embedding artificial intelligence into its software, making it the latest firm to enhance workplace tools with human-like abilities.
- Called Einstein, the new offering is a set of online AI services designed to automate tasks, predict behavior and spotlight relevant information.
- The company will demonstrate the software at its annual user conference next month in San Francisco.
Tue, Sep. 13, 5:19 PM
- In a Bloomberg interview, Marc Benioff comments that Oracle's (NASDAQ:ORCL) NetSuite (NYSE:N) acquisition marks a "desperation move" and doesn't feel Oracle will become a stronger CRM competitor because of it. He goes on to cite Larry Ellison's largest NetSuite shareholder status and claims the company was something he simply wanted to have.
- The $9.3B, $109 per share deal was announced in July, though some recent pushback by shareholder T. Rowe Price to the terms have complicated its closing.
- Oracle reports Q1 2017 results on Thursday with its share price moderately lower (2.45%) since the NetSuite deal was disclosed. Salesforce (NYSE:CRM), meanwhile, has also realized issues of late, trading down 8% since releasing its Q2 report on the last day of August.
Mon, Sep. 12, 10:25 AM
- Microsoft (MSFT) registers a new major customer for its CRM offering, marking a win over competitors Salesforce (CRM +0.4%) and Oracle (ORCL +0.6%).
- HP (HPQ +1.4%) will utilize Dynamics throughout its marketing and sales and services operations. HP already uses Microsoft's Azure, Office 365 and other Microsoft Cloud offerings.
- HP COO, Jon Flaxman: "We have chosen Microsoft Dynamics as our CRM solution for our direct selling, partners and services. This brings us a cloud-based solution that delivers a more effective and efficient collaboration engine across our business."
- Though the opportunity for the cloud enterprise space lies within all sizes of businesses, winning a large and notable client like HP demonstrates Microsoft continues to make headway within the highly competitive industry.
Thu, Sep. 1, 11:00 AM
- Salesforce.com (CRM -6.5%) produced a better-than-forecasted Q2, though outlook and some late-quarter isolated U.S. softness have caused concern.
- Barclays, Citi, Morgan Stanley, BTIG, Wunderlich, Oppenheimer & Co. and others address and adjust accordingly to some of the issues, though overall remain generally positive on Salesforce's prospects.
- The company is presently down around 8% on the month, around 11% over the last three and is up around 12% on the year.
Thu, Sep. 1, 9:24 AM
Thu, Sep. 1, 7:14 AM
- While Q2 results failed to live up to expectations - mostly thanks to weakness in the U.S. - secular growth stories like Salesforce (NYSE:CRM) should be bought on weakness, says analyst Alex Zukin. He reiterates his Overweight rating and $100 price target.
- The stock's lower by 7.45% premarket to $73.51.
Thu, Sep. 1, 5:33 AM
- Salesforce's (NYSE:CRM) billings growth of 15% (vs. estimates of 21-22%, and 30% growth over previous two quarters) is perplexing, Deutsche Bank writes in a note to clients: "We haven't picked up strong evidence of an end-of-July slowdown from other tech firms and haven't heard of any material internal sales structure changes."
- It also came suddenly, suggesting secular issues are not the culprit. "Absent a good explanation and knowing that Salesforce has overcome air pockets in the past, we're not panicking," firm says - but does lower 2017 billings growth estimate to 22% from 27%.
- Deutsche says it's "disappointed" in CRM's results, and takes PT down to $90 from $95 (post-market, shares changed hands at $73.90). Maintains Buy.
Wed, Aug. 31, 5:35 PM
Wed, Aug. 31, 4:28 PM
- Salesforce.com (NYSE:CRM) registers a 26% Y/Y increase in deferred revenue ($3.82B) and a 29% Y/Y increase in unbilled deferred revenue ($8B). Subscription and support revenues increased 24% Y/Y to $1.89B, professional services and other revenues increased 33% Y/Y to $151M.
- Cash generated from operations declined 18% Y/Y to $251M.
- Forecasts Q3 revenue of $2.11B-$2.12B (consensus $2.13B) and raises FY guidance to $8.275B-$8.325B (+24%-25% Y/Y). Projects a $0.04-$0.05 GAAP loss per share in Q3, Q3 non-GAAP diluted EPS of $0.20-$0.21 (consensus $0.24) and FY diluted EPS of $0.93-$0.95. FY operating cash flow is forecasted to grow 20%-21% Y/Y.
- Chairman and CEO Marc Benioff: "No other enterprise software company of our size is growing at this pace. At Dreamforce, you're going to see the next generation of Salesforce when we unveil Salesforce Einstein, the world's first comprehensive artificial intelligence platform for CRM. I've never been more excited about the innovation happening at Salesforce."
- Conference call
- Summary deck
- Press release
Wed, Aug. 31, 4:07 PM