Salesforce Stock Price-Shares Dropped By 8% as the CEO Stepped Down

Salesforce Stock Price-News:

After learning of Bret Taylor’s resignation as co-CEO and reduced fourth-quarter expectations, Salesforce stock price declined despite the company’s positive third-quarter earnings.

As a result, analysts cut their targets across the board in response to the disappointment and uncertainty this news release creates around the stock.

 

CRM Analyst Updated Coverage:

Cowen maintains the Outperform rating for Salesforce.com (CRM:NYE) and lowers the price target to $195 from $210 on the company’s stock.

Deutsche Bank Capital lowers the Salesforce stock price target on to $200 from $220 and maintains the Buy rating.

Wedbush lowers the price target on Salesforce.com to $200 from $215 and maintains the Overweight rating on the company.

Wells Fargo maintains an overweight rating and lowers the Salesforce stock price target to $175 from $190.

Barclays lowers the price target on Salesforce.com to $180 from $193 and maintains the Overweight rating.

Based on the stock projections for Salesforce.com Inc made by 30 analysts, the average 12-month Salesforce stock price target is expected to be USD 195.85.

Strong Buy is the average analyst recommendation for Salesforce.com Inc. Stock Salesforce.com Inc.’s stock analysis by Target Advisor is Slightly Bullish and is based on 5 positives and 3 negative signals.

Salesforce stock price was 160.25 USD at the most recent close. The share price of Salesforce.com Inc. has changed during the course of the last week by +5.26%, a month by -1.70%, and a year by -43.76%.

 

About Salesforce.com Inc. (CRM:NYE):

Salesforce, Inc. offers customer relationship management software that connects businesses and customers globally. With the help of its Customer 360 platform, customers can collaborate to provide connected experiences for their clients.

Sales, which allows businesses to deliver quotes, contracts, and invoices, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence; and Service, which enables businesses to provide dependable and highly personalized customer service and support at scale.

Its service offerings also include Slack, an engagement platform, an online learning platform that enables anyone to learn in-demand Salesforce skills, and a flexible platform that enables businesses of all sizes, locations, and industries to build business apps to bring them closer to their customers with drag-and-drop tools.

The company also provides services such as marketing, which helps businesses to plan, customize, and improve one-to-one customer marketing journeys, and commerce, which enables brands to synchronize the consumer experience across mobile, web, social, and store commerce points.

Additionally, its service solutions include MuleSoft, an integration service that enables users to access data throughout their company, and Tableau, an end-to-end analytics solution covering a variety of enterprise use cases.

The business offers its services to clients in the manufacturing, healthcare, and life sciences, as well as other sectors. To certify its clients and partners in the development, administration, deployment, and architecture of its service offerings, it also provides professional services and on-site and online training programs.

Through direct sales, consulting firms, systems integrators, and other partners, the corporation offers its services. San Francisco, California serves as the corporate headquarters of Salesforce, Inc., which was established in 1999.

 

Fundamental Stock Analysis of Salesforce.com (CRM:NYE):

Positive Fundamentals:

High market capitalization is something we like:
This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.

Superior returns on risk:
In the top quartile, this stock has outperformed its sector rivals on a risk-adjusted basis over the course of at least a 12-month holding period.

A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.

A favourable free cash flow:
The last four quarters saw the company generate positive total free cash flow.

Superior growth in earnings:
In the preceding five years, this stock’s profits growth was in the top quartile for its industry.

 

Negative Fundamentals:

Excessively expensive in relation to earnings:
Salesforce stock price is trading above the sector median and at a premium to its peers in terms of price to earnings.

Overpriced based on cash flow:
On a price-to-cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.

Priced excessively based on free cash flow:
On a price-to-free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.

 

Conclusion of Salesforce.com Stock Price Analysis:

The fundamental analysis for CRM stock forecast is Slightly Bullish with a  score of 6.3 out of 10.

 

Salesforce Dismisses Over 1000 Employees, with Additional Layoffs Possible

Salesforce Stock (CRM:NYE) Analysis:

Last Closing Price: $157.73

Consensus Rating: Strong Buy

12-Month Price Target: $216.86

Volume: 6.44 Million

 

The San Francisco-based software titan is likely to reduce its workforce further.

Thousands of employees will be affected by Salesforce’s workforce reduction.

On Monday, the San Francisco-based corporation laid off more than 1,000 employees, according to CNBC, which cited a source familiar with the matter.

The protocol stated that the IT giant wants to let off as many as 2500 employees. According to the report, roughly 2,000 of these employees would be terminated for “performance” difficulties, citing both an industry source and a former employee.

A source told Protocol that several hundred more employees, likely those who belong to a protected group such as those with disabilities, will be placed on a 30-day evaluation with the purpose of letting them go after the study is complete. According to the source, it is likely that workers will be laid off before the Thanksgiving holiday.

CNBC reported that senior officials at some of Salesforce’s clients have begun weighing in on purchases, resulting in extended deal cycles. “Our sales performance process promotes responsibility. Unfortunately, this can result in some employees leaving the company, and we assist them during their transition,” a Salesforce spokeswoman told CNBC.

Globally, Salesforce has approximately 78,000 employees, according to a February blog post by the company. The same month, the firm stated its intention to increase executive accountability for environmental, social, and governance (ESG) activities. To advance these efforts, the San Francisco-based corporation said that beginning this year, a part of variable compensation for senior vice presidents and above will be determined by ESG metrics.

“It’s unfortunate that Salesforce has been affected by these broader tech layoffs, which also affect Meta, Twitter, Snap, Microsoft, and IBM,” said Ben McCarthy, founder of Salesforce.

Cerebral, a provider of teletherapy and medication management, has previously said it will lay off approximately 20% of its personnel to meet patient demand and decrease growth goals. In addition, Seagate Technology has declared its intention to reduce its global workforce by 8%, or approximately 3,000 employees, citing diminishing demand and economic uncertainties.

Additionally, Beyond Meat (BYND:NSD), Warner Bros. Television Group (WBD:NSD), and DocuSign (DOCU:NSD) have announced layoffs. The Wall Street Journal also reported that Meta (META:NSD) is allowing many of its 83,553 employees a month to apply for different positions within the company.

In a similar fashion, Google (GOOGL:NSD) has warned approximately 50 employees (almost half of those employed at the company’s startup incubator Area 120) that they must find a new internal function within three months if they wish to remain employed.

According to the most recent Job Opportunities and Labor Turnover Survey, the number of job openings declined from 11.2 million in July to 10.1 million in August (JOLTS).

 

Salesforce Stock-Analyst Forecast and Price Targets:

Fundamental analysis of the salesforce stock is slightly bullish. Based on the consensus analyst rating, the stock currently has a “Strong Buy” rating with an average 12-months salesforce stock price target of $216.86 per share.

STA Research maintains a “Buy” rating on the stock with $175 target price.

Oppenheimer Holdings maintains the $200 salesforce stock price target and rates it as “Outperform”.

 

About Salesforce.com Inc. (CRM:NYE):

Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers.

The company’s service offerings include Sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and Service that enables companies to deliver trusted and highly personalized customer service and support at scale.

Its service offerings also comprise a flexible platform that enables companies of various sizes, locations, and industries to build business apps to bring them closer to their customers with drag-and-drop tools; an online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement.

The company provides its services through direct sales; and consulting firms, systems integrators, and other partners. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.