Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.If you judge Salesforce based on its best-known product lines, you’re likely to underestimate the business and its level of creativity. Questions or comments about this article and/or its author? Click here> Yet the focus remains on the WORK acquisition, and whether CRM’s 50+% growth year to date is worthy of near-term support. Revenues of $5.42 billion surpassed the $5.25 billion in the Zacks consensus. Salesforce also reported fiscal Q3 earnings after the bell this afternoon, beating earnings expectations by a full dollar to $1.74 per share, marking a positive surprise of 135%. Slack CEO Stewart Butterfield, who had only brought his company public last year, will stay on to run the Slack business. That said, it creates an enormous enterprise software presence whose immediate rival appears to only be Microsoft MSFT. In face, it is the second-largest software acquisition of all-time, behind IBM’s IBMpurchase of Red Hat in 2018 for $34 billion.īoth stocks dropped in after-hour trading on the news, however: investors seem to be puzzled as to the timing of salesforce CEO Marc Benioff’s decision at current valuations the company is likely going to need to borrow to complete this transaction, which is reported for next fiscal Q2. This is by far the largest acquisition in salesforce’s 20+-year existence, making last year’s purchase of Tableau for $15.3 billion pale in comparison. Speaking of salesforce, the cloud software giant made it official this afternoon: it has agreed to acquire smaller rival Slack WORK for $27.7 billion in cash and stock ($26.79 per share, at 0.0776 shares of CRM for each share of WORK). We feel eventually the mindset of market participants will consider whether stocks are doing too much too soon, but for now, everyone feels good looking ahead to an economy unhindered by the coronavirus pandemic. Then the small-cap Russell 2000 earned 0.84% on the day, with the Dow, held back a bit by down sessions for 3M MMM and CRM, +0.63%. The Nasdaq led the way on the day, +1.28%, followed by the S&P 500 up 1.13%. As Zacks Exec VP Kevin Matras is fond of saying, “These are historic times for the market.” He’s not wrong. It’s the 27th record close for the S&P, the 46th for the Nasdaq.
You can say a lot of things about the year 2020, but market underperformance is not one of them.
What difference does the flip of a calendar make? The “vaccine rally” continues onward this Tuesday, with the S&P 500 and the Nasdaq closing at fresh all-time highs.
0 kommentar(er)
