Salesforce: Pressure To Deliver Is Rising


  • Salesforce’s share price performance continues to disappoint as executive leadership is shaken up.
  • Risks for the inorganic growth strategy are rising as outside tailwinds morph into headwinds.
  • Increasing amount of investors is becoming discontent with the lack of high and sustainable GAAP profitability.

The new Salesforce corporate headquarters together with Salesforce East and West towers visible in the background

Sundry Photography

December 1 was quite painful for Salesforce (NYSE:CRM) shareholders as shares fell by more than 8% during the trading session. Usually, quarterly figures contain a large amount of noise, and such an event would make the share price of any company

Data by YCharts

Bret Taylor leaving Salesforce

Seeking Alpha

Salesforce performance obligaiton

Salesforce Investor Presentation

Salesforce operating margin

Prepared by the author, using data from SEC Filings

Salesforce gross margin

Prepared by the author, using data from SEC Filings

Salesforce cash flow

Salesforce 10-Q SEC Filing

Salesforce stock based compensation

Prepared by the author, using data from SEC Filings

Salesforce number of shares

Prepared by the author, using data from SEC Filings

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Additional disclosure: Please do your own due diligence and consult with your financial advisor, if you have one, before making any investment decisions. The author is not acting in an investment adviser capacity. The author’s opinions expressed herein address only select aspects of potential investment in securities of the companies mentioned and cannot be a substitute for comprehensive investment analysis. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the companies’ SEC filings. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice.

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