Entering text into the input field will update the search result below

Salesforce jumps on report activist Starboard has taken stake (update)

Oct. 18, 2022 9:18 AM ETSalesforce, Inc. (CRM)SPLKBy: Joshua Fineman, SA News Editor24 Comments

Salesforce West Tower displays the company logo

Takako Hatayama-Phillips

Update 9:20am: Updates shares, adds Salesforce comment.

Salesforce (NYSE:CRM) rose 5.4% in premarket trading on a report that activist Starboard Value has taken a "significant" stake in the company.

Starboard Value head Jeff Smith will outline his thesis on

Recommended For You

Comments (24)

Have a tip? Submit confidentially to our News team. Found a factual error? Report here.

Shouldn't this drop below $100 if they miss another 2 quarters' numbers/lower guidance due to 'whatever" excuse?

5x sales today should be 2.5 x sales???
Maybe the new activist shareholder is going to squeeze some of wokeness out of the company. Go woke go broke… but in the opposite direction
Shangrila Value profile picture
Oh oh. Big layoffs are coming.
SuperPac profile picture
''Smith will focus on driving higher incremental margins and he will say that Salesforce's (CRM) valuation discount to its peers is due to the company's "subpar" mix of growth and profitability, according to Faber. He will also argue that the company hasn't generated "meaningful operational leverage" relative to its peers in recent years. Smith also believes that Salesforce (CRM) long-term targets are "less ambitious" than peers.''
I don't know much about Starboard or Smith...but I agree with everything, literally everything, that Smith / Starboard have to say here. Especially on margins and the ability to price up.

I think it's time for Benioff to either change tack or leave. I think he would be wise to accept the guidance and drive of Smith / Starboard.
Karl Kelly profile picture
@SuperPac I agree with you. I normally don’t like activist investors. But sales force needs to change and their ceo has shown he can’t change in his own.
SuperPac profile picture
@Karl Kelly Paypal - same. They need some ''activist'' investor.
Karl Kelly profile picture
@SuperPac Agreed, they are chasing rainbows in the old sense of the word. Which in the end leaves us with nothing.
mosky moc profile picture
i hear CRM is actively outsourcing a lot of their support jobs to india
Shangrila Value profile picture
@mosky moc everyone is doing it.
vireoman profile picture
@mosky moc It's okay to hire foreigners at lower wages as long as they remain in their home country. What isn't okay is for foreigners to find asylum in this country, be paid lower wages, and then pay taxes on those wages.
joeharv68 profile picture
maybe woke CEO Marc Benioff should pull out of conservative states, that would really boost shareholder value.
vireoman profile picture
@joeharv68 As businesses that are domiciled in those red states find CRM software as invaluable in their pursuit of boosting shareholder value, I predict that Mr Benioff's alleged excess of the dreaded 'wokeness' won't prove to be a problem.
Salesforce is doing good.
The management team is doing good.
There is no problem with long-rerm strategies and positioning.
We do not need stupid activists to pressure for SHORT-TERM margin improvement, take the profit then leave after fucking up the company for long-term.
I am going to vote NO for any board member nomination from Starboard Value for sure.
Get the fuck out and play your game elsewhere.
@Shinaberow i agree on the overall statement but their Profit Margins should be much higher, their current margins are literally ridiculous, stock based comp is really hurting their bottom line as they are growing it along with revenue, i believe some dicipline in this age would be great for them as other companies (google,Apple,etc) are all tightening their belts, so employees can't as easily treathen to leave elsewhere for better comp. just tightening that will literally free up billions in profit.
Just the Millionaire next door profile picture
Even being down -49% last 12 months stock still up 295% last 10 years.
@Just the Millionaire next door wish I sold when it hit $300 though..
Just the Millionaire next door profile picture
@User18 Sold mine earlier this year at 180.
bill h illify profile picture
We shall see…margin improvement pressure coming?
msawi11 profile picture
@bill h illify CRM needs to fire lots of employees
@msawi11 who do they need to fire and why?
msawi11 profile picture
@mantles very bloated employee rolls. I have friends who work at CRM and tell me all.

About CRM

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

Related Stocks

SymbolLast Price% Chg
Salesforce, Inc.
Adobe Inc.
Intuit Inc.
Synopsys, Inc.
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.