Salesforce: Co-CEO Exit Is Badly Timed


  • Salesforce’s Co-CEO Bret Taylor is set to leave Salesforce by the end of January 2023. We explain why it’s a significant loss for the company, given his responsibilities and influence.
  • Therefore, Co-CEO Marc Benioff needs to restructure expeditiously with the right A-team to help Salesforce recover its growth cadence. However, Wall Street analysts seem unconvinced.
  • Despite that, investors need to ask whether CRM’s valuation has reflected significant pessimism, despite the lack of robust GAAP earnings for now.
  • Maintain Buy with a PT of $170.

The entrance to Salesforce office building in Dallas, Texas, USA.



Salesforce, Inc. (NYSE:CRM) has dominated the headlines for Cloud SaaS companies over the past week. After the company announced outgoing Co-CEO Bret Taylor would be leaving in late January at its recent Q3 earnings release,

Salesforce Revenue consensus estimates

Salesforce Revenue consensus estimates (S&P Cap IQ)

CRM NTM EBITDA multiples valuation trend

CRM NTM EBITDA multiples valuation trend (koyfin)

Stock NTM EBITDA multiple
Microsoft (MSFT) 17.4x
Adobe (ADBE) 16.5x
ServiceNow (NOW) 28.4x
Workday (WDAY) 22.4x

Disclosure: I/we have a beneficial long position in the shares of CRM, MSFT, ADBE, NOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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