ikfhoo

Salesforce.com: Pricey and Coming Down Fast

The stock analysis at those multiples is hard to argue with but there are a couple things I take exception with.

CRM may be the main product but if you have looked at their portfolio lately you will see they have quite a few applications and I assume more will be announced next month at their user conference, so far from a one trick-pony.

Not understanding what Force.com is but still dissing it is a dis-service. They are not selling a tool, they are selling a service. The tools are free. Underneath all the applications is a platform, which they have now exposed and sell as a product (service) call Force.com.

This is about a complete change in paradigm of development. Moving from IT building applications on on-premise servers to running them on the cloud. The issue here is whether SFDC can attract enough customers to build applications this way on their cloud. This explains the 10 year comment to go from new to mainstream. BTW - I believe Java is about 10 years old, so that should provide some perspective.

So while this may be worthless to a short-term "short" to a long term "investor" it's called getting in early. However, I agree they may want to wait until the stock comes down first.