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Salesforce Stock: Solid Results, Investors Overreact To Guidance

Dec. 01, 2021 7:10 AM ETSalesforce, Inc. (CRM) Stock12 Comments


  • Salesforce investors didn't take it too well that the current remaining performance obligation for Q4 points to just 19% y/y. But I suspect that is just minor quarterly noise.
  • Salesforce continues to digest its acquisition of Slack.
  • CRM stock appears to be cheap, at less than 9x forward revenues, but some nuance considerations come into play.
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Dreamforce annual convention taking place at Moscone Convention Center

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Investment Thesis

Salesforce (NYSE:CRM) reported results that were mostly as expected. There were no major noteworthy items to surprise investors one way or another.

Salesforce's acquisition of Slack continues to be digested. Meanwhile, this has

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Comments (12)

TechSales profile picture
the algos hit after hours....great company and market leadership - will continue to grow. Long CRM for 15 years. Carry on.
Joey Joe Joe profile picture
It’ll be sub $150 during 2022.
@Joey Joe Joe based on what?
Interesting article. Thanks for sharing the analysis.
Thanks for the research on this one Michael. I'm holding this one for the time being since it's getting close to long-term gains.
Michael Wiggins De Oliveira profile picture

That's cool. Good luck my friend.
Co-CEO ? Can't see it working with the egos involved. Is there more to the story? Hope Marc is healthy and his passion as strong as ever.
TechSales profile picture
@Epicontact2 Benioff did the Co-CEO gig before with Keith Block. Not much to this go around. He made a long term friend and colleague a fortune so Block is watching the sunset. Nothing different this go around.
Excellent analysis and I agree with its conclusions
My sense indicates a pause in acquisitions in the near/medium term in order to prove out the Slack acquisition which Im told will blow the mind (in a positive way)
The aftermarket reaction was BS
Turn your back on CRM at your own risk… look for +30% y/y from pre earnings level
TechSales profile picture
@CLUB 198 the young professional right out of college or a few years out....don't answer their iPhone for a work call.....it's..."Slack me", "put it on Slack", "it's on Slack", "create a Slack channel", "I'll Slack you"...great acquisition and platform fit for Salesforce. Will only make Salesforce more sticky in the enterprise with ARR and expansions.
Nice article. It sure is difficult to place confidence into serial aquirers. Then again, GE was tremendous until they wrecked the balance sheet. I simply can’t shake the idea that CRM is MSFT 2.0. In a digital app world the ‘windows’ of tomorrow is the sales force 360 enterprise App Library. The efficiency they bring and what they are worth to enterprises is crazy. If they become the monopoly of this value then the pricing power will be equal to MSFT. Companies that clear 25B revenue and 20% op margin tend to have a hell of a track record long term. We shall see!
That’s a brief and much better analysis. You don’t need to say more
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