Short interest for Salesforce gives investors a sense of the degree to which investors are betting on the decline of Salesforce's stock. Short interest data is updated every two weeks.

Salesforce Stock (NYSE:CRM), Short Interest Report

Salesforce

Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.

Salesforce.com

News

Markets

Trading Ideas

The latest trading session saw Salesforce.com (NYSE: CRM) ending at $275.74, denoting a +0.53% adjustment from its last day&#39;s close. The stock exceeded the S&amp;P 500, which registered a gain of 0.32% for the day.

Salesforce.com Rises Higher Than Market: Key Facts

Google

Tech

Media

AMZN

EBAY

GOOG

GOOGL

iShares Trust S&P Global Telecommunications Sector Index Fund

MSFT

PYPL

Google confirms layoffs in vital teams ahead of annual I/O conference, aiming to align resources with product priorities and reduce bureaucracy.

Google Announces Layoffs Across Key Teams As It Gears Up For I/O Developer Conference

salesforce shutter

Price Target

Reiteration

Analyst Ratings

FEPI

SmartETFs Advertising & Marketing Technology ETF

MRAD

Mizuho analyst reiterates Buy rating on Salesforce with $345 price target. AI-focused event announced new features and potential for monetization.

Salesforce&#39;s AI Innovations, Partner Network Expansion Impress Analyst

Salesforce Inc

CRUMBS BAKE SHOP INC by Crumbs Bake Shop, Inc.

Crumbs Bake Shop Inc

Cormedix Inc

Carmila SAS

CERMETEK MICROELECTRONICS by Cermetek Microelectronics, Inc.

Cermetek Microelectronics Inc

Critical Metals Corp

CHINA MX LFESTYL UNSP/ADR by CHINA RES MIXC LIFESTYLE SVCS LTD.

China Resources Mixc Lifestyle Services Ltd

Carmot Therapeutics Inc

America's Car-Mart Inc

CROMWELL EURPN RL EST NEW by CROMWELL EUROPEAN REAL ESTATE INVT TR.

Cromwell European REIT

CREDITRISKMONITOR.COM INC by CreditRiskMonitor.com, Inc.

CreditRiskMonitor.com Inc

Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) has outperformed the market over the past 10 years by 7.54% on an annualized basis producing an average annual return of 17.9%. Currently, Salesforce has a market capitalization of $260.63 billion. 
Buying $1000 In CRM: If an investor had bought $1000 of CRM stock 10 years ago, it would be worth $5,008.20 today based on a price of $268.69 for CRM at the time of writing.
<h3>Salesforce's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1714595424_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 10 Years Ago, You Would Have $5,000 Today

Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) in comparison to its major competitors within the Software industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
<h3>Salesforce Background</h3>
Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
<table>
<thead>
<tr>
<th>Company</th>
<th>P/E</th>
<th>P/B</th>
<th>P/S</th>
<th>ROE</th>
<th>EBITDA (in billions)</th>
<th>Gross Profit (in billions)</th>
<th>Revenue Growth</th>
</tr>
</thead>
<tbody>
<tr>
<td>Salesforce Inc</td>
<td>64.03</td>
<td>4.37</td>
<td>7.59</td>
<td>2.46%</td>
<td>$2.75</td>
<td>$7.14</td>
<td>10.77%</td>
</tr>
<tr>
<td>SAP SE</td>
<td>83.79</td>
<td>4.59</td>
<td>6.29</td>
<td>-1.92%</td>
<td>$-0.42</td>
<td>$5.76</td>
<td>8.06%</td>
</tr>
<tr>
<td>Adobe Inc</td>
<td>44.18</td>
<td>13.40</td>
<td>10.63</td>
<td>3.88%</td>
<td>$1.21</td>
<td>$4.59</td>
<td>11.32%</td>
</tr>
<tr>
<td>Intuit Inc</td>
<td>63.90</td>
<td>10.36</td>
<td>11.75</td>
<td>2.08%</td>
<td>$0.6</td>
<td>$2.53</td>
<td>11.34%</td>
</tr>
<tr>
<td>Synopsys Inc</td>
<td>58.56</td>
<td>12.13</td>
<td>13.44</td>
<td>7.01%</td>
<td>$0.53</td>
<td>$1.32</td>
<td>21.15%</td>
</tr>
<tr>
<td>Cadence Design Systems Inc</td>
<td>71.75</td>
<td>21.02</td>
<td>18.44</td>
<td>7.1%</td>
<td>$0.36</td>
<td>$0.88</td>
<td>-1.23%</td>
</tr>
<tr>
<td>Workday Inc</td>
<td>46.97</td>
<td>8</td>
<td>8.94</td>
<td>16.16%</td>
<td>$0.24</td>
<td>$1.46</td>
<td>16.75%</td>
</tr>
<tr>
<td>Roper Technologies Inc</td>
<td>37.53</td>
<td>3.07</td>
<td>8.61</td>
<td>2.17%</td>
<td>$0.73</td>
<td>$1.18</td>
<td>4.16%</td>
</tr>
<tr>
<td>Palantir Technologies Inc</td>
<td>244.11</td>
<td>14.08</td>
<td>22.69</td>
<td>2.8%</td>
<td>$0.11</td>
<td>$0.5</td>
<td>19.61%</td>
</tr>
<tr>
<td>Autodesk Inc</td>
<td>50.80</td>
<td>24.55</td>
<td>8.36</td>
<td>16.9%</td>
<td>$0.35</td>
<td>$1.34</td>
<td>3.89%</td>
</tr>
<tr>
<td>Datadog Inc</td>
<td>896.43</td>
<td>20.71</td>
<td>20.66</td>
<td>2.82%</td>
<td>$0.07</td>
<td>$0.48</td>
<td>25.62%</td>
</tr>
<tr>
<td>Ansys Inc</td>
<td>56.69</td>
<td>5.26</td>
<td>12.50</td>
<td>5.29%</td>
<td>$0.37</td>
<td>$0.74</td>
<td>15.99%</td>
</tr>
<tr>
<td>AppLovin Corp</td>
<td>71.96</td>
<td>18.47</td>
<td>7.79</td>
<td>14.58%</td>
<td>$0.37</td>
<td>$0.68</td>
<td>35.73%</td>
</tr>
<tr>
<td>PTC Inc</td>
<td>89.62</td>
<td>7.56</td>
<td>9.74</td>
<td>2.42%</td>
<td>$0.16</td>
<td>$0.44</td>
<td>18.09%</td>
</tr>
<tr>
<td>Tyler Technologies Inc</td>
<td>104.66</td>
<td>6.48</td>
<td>9.94</td>
<td>1.82%</td>
<td>$0.11</td>
<td>$0.22</td>
<td>8.58%</td>
</tr>
<tr>
<td>Zoom Video Communications Inc</td>
<td>29.52</td>
<td>2.34</td>
<td>4.16</td>
<td>3.87%</td>
<td>$0.2</td>
<td>$0.87</td>
<td>2.56%</td>
</tr>
<tr>
<td>Bentley Systems Inc</td>
<td>52.49</td>
<td>17.82</td>
<td>14.21</td>
<td>22.81%</td>
<td>$0.05</td>
<td>$0.24</td>
<td>8.26%</td>
</tr>
<tr>
<td>NICE Ltd</td>
<td>43.73</td>
<td>4.22</td>
<td>6.23</td>
<td>2.49%</td>
<td>$0.19</td>
<td>$0.42</td>
<td>9.61%</td>
</tr>
<tr>
<td>Dynatrace Inc</td>
<td>68.65</td>
<td>7.01</td>
<td>9.87</td>
<td>2.3%</td>
<td>$0.05</td>
<td>$0.3</td>
<td>22.74%</td>
</tr>
<tr>
<td>Manhattan Associates Inc</td>
<td>67.34</td>
<td>52.95</td>
<td>13.39</td>
<td>20.78%</td>
<td>$0.06</td>
<td>$0.14</td>
<td>15.18%</td>
</tr>
<tr>
<td>Average</td>
<td>114.88</td>
<td>13.37</td>
<td>11.45</td>
<td>7.12%</td>
<td>$0.28</td>
<td>$1.27</td>
<td>13.55%</td>
</tr>
</tbody>
</table>
<style>
 table {
 width: 100%;
 border-collapse: collapse;
 font-family: Arial, sans-serif;
 font-size: 14px;
 }

 th, td {
 padding: 8px;
 text-align: left;
 }

 th {
 background-color: #293a5a;
 color: #fff;
 text-align: left;
 }

 tr:nth-child(even) {
 background-color: #f2f4f8;
 }

 tr:hover {
 background-color: #e1e4ea;
 }

 td:nth-child(3), td:nth-child(5) {
 text-align: left;
 }

 .dividend-amount {
 font-weight: bold;
 color: #0d6efd;
 }

 .dividend-frequency {
 font-size: 12px;
 color: #6c757d;
 }
 </style>Through a meticulous analysis of Salesforce, we can observe the following trends: 
<ul>
<li>
The stock's Price to Earnings ratio of 64.03 is lower than the industry average by 0.56x, suggesting potential value in the eyes of market participants.
</li>
<li>
Considering a Price to Book ratio of 4.37, which is well below the industry average by 0.33x, the stock may be undervalued based on its book value compared to its peers.
</li>
<li>
Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 7.59, which is 0.66x the industry average.
</li>
<li>
The Return on Equity (ROE) of 2.46% is 4.66% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
</li>
<li>
Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $2.75 Billion, which is 9.82x above the industry average, indicating stronger profitability and robust cash flow generation.
</li>
<li>
The gross profit of $7.14 Billion is 5.62x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
</li>
<li>
With a revenue growth of 10.77%, which is much lower than the industry average of 13.55%, the company is experiencing a notable slowdown in sales expansion.
</li>
</ul>
<h3>Debt To Equity Ratio</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1714575634_0.png" alt="debt to equity" />
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When examining Salesforce in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
<ul>
<li>
Salesforce demonstrates a stronger financial position compared to its top 4 peers in the sector.
</li>
<li>
With a lower debt-to-equity ratio of 0.21, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
</li>
</ul>
<h3>Key Takeaways</h3>
In comparison to its peers in the Software industry, Salesforce exhibits low PE, PB, and PS ratios, indicating potential undervaluation. However, the company's low ROE suggests lower profitability compared to industry peers. On the positive side, Salesforce demonstrates high EBITDA and gross profit figures, reflecting strong operational performance. The low revenue growth rate may raise concerns about the company's future prospects in the competitive industry landscape.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insights Into Salesforce's Performance Versus Peers In Software Sector

Whales with a lot of money to spend have taken a noticeably bullish stance on Salesforce.
Looking at options history for Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) we detected 20 trades.
If we consider the specifics of each trade, it is accurate to state that 50% of the investors opened trades with bullish expectations and 35% with bearish.
From the overall spotted trades, 16 are puts, for a total amount of $736,658 and 4, calls, for a total amount of $214,590.
<h3>Predicted Price Range</h3>
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $160.0 to $290.0 for Salesforce during the past quarter. 
<h3>Volume &amp; Open Interest Development</h3>
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Salesforce's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Salesforce's whale trades within a strike price range from $160.0 to $290.0 in the last 30 days. 
<h3>Salesforce Option Volume And Open Interest Over Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1714509985_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>06/21/24</td>
<td>$112.35</td>
<td>$110.9</td>
<td>$111.5</td>
<td>$160.00</td>
<td>$111.5K</td>
<td>246</td>
<td style="text-align: right;">10</td>
</tr>
<tr>
<td>CRM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$16.85</td>
<td>$16.5</td>
<td>$16.5</td>
<td>$250.00</td>
<td>$103.9K</td>
<td>1.9K</td>
<td style="text-align: right;">204</td>
</tr>
<tr>
<td>CRM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$16.85</td>
<td>$16.5</td>
<td>$16.5</td>
<td>$250.00</td>
<td>$61.0K</td>
<td>1.9K</td>
<td style="text-align: right;">250</td>
</tr>
<tr>
<td>CRM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>10/18/24</td>
<td>$11.45</td>
<td>$11.2</td>
<td>$11.32</td>
<td>$250.00</td>
<td>$56.6K</td>
<td>516</td>
<td style="text-align: right;">50</td>
</tr>
<tr>
<td>CRM</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$18.15</td>
<td>$18.1</td>
<td>$18.1</td>
<td>$280.00</td>
<td>$56.1K</td>
<td>1.8K</td>
<td style="text-align: right;">59</td>
</tr>
</tbody>
</table>

<h3>About Salesforce</h3>
Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Having examined the options trading patterns of Salesforce, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Where Is Salesforce Standing Right Now?</h3>
<ul>
<li>Currently trading with a volume of 5,212,232, the CRM's price is down by -2.47%, now at $268.92. </li>
<li>RSI readings suggest the stock is currently may be oversold.</li>
<li>Anticipated earnings release is in 29 days.</li>
</ul>
<h3>Expert Opinions on Salesforce</h3>
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $349.4.
<ul>
<li>In a cautious move, an analyst from RBC Capital downgraded its rating to Outperform, setting a price target of $350. </li>
<li>Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for Salesforce, targeting a price of $360. </li>
<li>An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $345. </li>
<li>In a cautious move, an analyst from JMP Securities downgraded its rating to Market Outperform, setting a price target of $342. </li>
<li>An analyst from Stifel persists with their Buy rating on Salesforce, maintaining a target price of $350. </li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Salesforce, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

Salesforce's Options: A Look at What the Big Money is Thinking

The latest trading session saw Salesforce.com (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>) ending at $275.74, denoting a +0.53% adjustment from its last day&#39;s close. The stock exceeded the S&amp;P 500, which registered a gain of 0.32% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.35%.
The customer-management software developer&#39;s stock has dropped by 8.93% in the past month, falling short of the Computer and Technology sector&#39;s loss of 1.9% and the S&amp;P 500&#39;s loss of 2%.
The upcoming earnings release of Salesforce.com will be of great interest to investors. The company is predicted to post an EPS of $2.38, indicating a 40.83% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.14 billion, up 10.82% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.71 per share and revenue of $37.93 billion. These totals would mark changes of +18.13% and +8.82%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company&#39;s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we&#39;ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Salesforce.com boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 28.24. This indicates a discount in contrast to its industry&#39;s Forward P/E of 28.54.
It is also worth noting that CRM currently has a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company&#39;s expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 2.32 based on yesterday&#39;s closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
<a href="https://www.zacks.com/stock/news/2264502/salesforce-com-crm-rises-higher-than-market-key-facts?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_6-2264502">To read this article on Zacks.com click here.</a>

Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, ahead of its annual I/O developer conference in May, has confirmed layoffs across various vital teams such as Flutter, Dart, Python, and others, according to employee reports on social media.&nbsp;
The tech giant did not specify the teams, roles, or the number of individuals affected, TechCrunch&nbsp;<a target="_blank" href="https://techcrunch.com/2024/04/29/google-lays-off-staff-from-flutter-dart-python-weeks-before-its-developer-conference/" rel="noreferrer noopener">reports</a>.&nbsp;
Google spokesperson Alex García-Kummert explained that these changes aim to align resources with the company&#8217;s most significant product priorities, improve efficiency, and reduce bureaucracy.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38498886/microsoft-meta-and-alphabet-ramp-up-ai-investments-spend-over-32b-in-q1" rel="noreferrer noopener">Microsoft, Meta, and Alphabet Ramp Up AI Investments, Spend Over $32B in&nbsp;Q1</a>
The layoffs are part of regular organizational adjustments and are not company-wide. Google encourages those affected to apply for other available positions within the company.&nbsp;
Despite the cuts, Google PM Kevin Moore assured the Flutter development community that they&nbsp;are still focused&nbsp;on upcoming projects, including new updates for Flutter at the I/O conference.
The company has also filed a WARN notice in California, indicating the layoff of 50 employees across three locations in Sunnyvale.
In 2024,&nbsp;<a target="_blank" href="https://www.benzinga.com/startups/24/02/37397112/despite-booming-economy-and-record-profits-google-amazon-microsoft-and-more-lay-off-over-42-000-so-f" rel="noreferrer noopener">the tech sector</a>&nbsp;surpassed last year&#8217;s layoff figures, with over 42,324 workers losing their jobs.&nbsp;
This&nbsp;comes after nearly 263,000 tech layoffs in 2023, continuing the industry&#8217;s trend of job cuts.&nbsp;Major companies, including Google,&nbsp;Amazon.com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>),&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Discord,&nbsp;Salesforce Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NASDAQ">CRM</a>),&nbsp;eBay Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>), and&nbsp;PayPal Holdings Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>)&nbsp;have&nbsp;announced significant layoffs in January.
Several factors contribute to this seemingly contradictory situation. Firstly, the rapid advancement in AI technology requires substantial investments in new technologies, prompting companies to reallocate resources and reduce their workforce.
GOOG shares&nbsp;gained 56% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares Global&nbsp;Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) and&nbsp;The Communication Services Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>).
Price Action:&nbsp;GOOG shares traded lower by 0.07% at $167.78 on&nbsp;the last check Tuesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38312864/googles-strategic-job-cuts-reflect-ongoing-cost-cutting-measures-affecting-real-estate-and-finance-d" rel="noreferrer noopener">Google&#8217;s Strategic Job Cuts Reflect Ongoing Cost-Cutting Measures, Affecting Real Estate and Finance Departments</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Mizuho analyst Gregg Moskowitz reiterated a Buy rating on Salesforce Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) with a price target of $345.
On Friday, the analyst attended Saleforce&#8217;s World Tour in New York City. At the AI-focused event, Salesforce announced the general availability of Einstein Copilot and the Zero Copy Partner Network, which lets users centralize data and metadata from third-party data stores without moving or copying data, and new seller functionality. 
Einstein Copilot headlined the event, but the Zero Copy Partner Network and the incremental sales functionality added to Einstein Copilot are also meaningful, as per the analyst. 
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/m-a/24/04/38357035/whats-going-on-with-salesforce-and-informatica-stock-monday" rel="noreferrer noopener">Salesforce Ends Acquisition Talks with Informatica: What Happened and What&#8217;s Next?</a>
The announcements further illustrate that Salesforce can legitimately monetize GenAI and fortify its competitive position.
Moskowitz&#8217;s checks indicated that most customers are gradually ramping up Data Cloud. That said, at the event, Salesforce called out some significant early successes, including a resort driving a 40% revenue uplift via superior personalization and a large airport that has seen a 30% increase in digital revenue.
The updates reinforced Salesforce&#8217;s competitive moat as a core repository for customer data now that Data Cloud contains a fuller picture of not just a customer&#8217;s first-party sales/marketing data but also the relationships between the data and metadata across multiple data stores, Moskowitz added.
Moskowitz projected first-quarter revenue and adjusted EPS of $9.15 billion and $2.37.
Salesforce stock gained 44% in the past 12 months. Investors can gain exposure to the stock via REX FANG &amp; Innovation Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and SmartETFs Advertising &amp; Marketing Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRAD#NYSE">MRAD</a>).
CRM Price Actions: Salesforce shares traded higher by 0.82% at $275.29 at publication on Friday. 
Also Read: <a href="https://www.benzinga.com/government/24/04/38386636/salesforce-pushes-for-transparency-in-ai-emissions-reporting" target="_blank" rel="noreferrer noopener">Salesforce Pushes for Transparency in AI Emissions Reporting</a>
Photo: Shutterstock

Salesforce's AI Innovations, Partner Network Expansion Impress Analyst

Key Takeaways:
<ul>
<li>Baozun&rsquo;s revenues rose 5% last year following its acquisition of Gap China, which represented 14% of total annual sales</li>
<li>Product sales from the company&rsquo;s older e-commerce business fell by 21% last year, while e-commerce services revenue also slumped by 5%</li>
</ul>
By Edith Terry
Baozun Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bzun#NASDAQ">BZUN</a>) has been undergoing a major transformation this past year, buying brands and investing in a new offshore business as it diversifies beyond its status as one of China&rsquo;s largest e-commerce service providers. But what exactly is happening at this company, whose major stakeholders include e-commerce giant Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>)?
A few new hints came last week, when Baozun released its&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0419/2024041901276.pdf">annual report</a>&nbsp;for 2023 and announced&nbsp;<a href="https://www.prnewswire.com/news-releases/baozun-strengthens-leadership-team-302121995.html">two senior management moves</a>. Catherine Zhu was named as the company&rsquo;s new CFO, while Arthur Yu relinquished his former CFO position to focus on his other role as president of Baozun E-commerce. Both joined the company four years ago, with the latest shift apparently aimed at giving Yu more time to focus on reviving Baozun&rsquo;s core e-commerce services business.
Baozun&rsquo;s Hong Kong-listed shares fell 4% the day after the announcement, in the latest sign of lackluster investor interest in the company&rsquo;s ongoing transformation. The company previously announced its 2023 financial results in March, meaning the latest decline was likely in response to the executive moves and new details in the annual report. The company&rsquo;s Nasdaq-listed shares have lost more than 40% of their value over the last 52 weeks.
The annual report sheds some light on Baozun&rsquo;s latest thinking. It is taking its year-old brand management business in two new directions domestically, while outside China it&rsquo;s also heading south &ndash; to Southeast Asia, that is. Its purchase of&nbsp;Gap Inc.&rsquo;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gps#NYSE">GPS</a>) China operations last year and its 51% joint venture formed with privately owned brand owner&nbsp;Authentic Brands Group&nbsp;just months later have become templates for the company&rsquo;s two new brand-related businesses, Baozun Brand Management (BBM) and Baozun International (BZI).
Baozun E-commerce remains at the core of the company&rsquo;s brand-management business in China, providing back-office e-commerce supply chain management services for brands. Baozun International is doing the same thing internationally, initially in Southeast Asia. CEO Vincent Qiu said on the company&rsquo;s latest earnings call in March that Gap China, which lies at the heart of Baozun Brand Management, has sharply narrowed its operating losses as the company works to recast the chain as a more upscale brand.
&ldquo;This breakthrough in our first year is the result of having established a solid foundation for growth and success in brand management,&rdquo; Qiu said. &ldquo;Baozun Brand Management is a key component of Baozun Group&rsquo;s second growth curve. Baozun International represents a longer-term opportunity for which we continue to lay the business foundation and infrastructure.&rdquo;
<h3>Unimpressive Numbers</h3>
While the vision sounds good in theory, the actual numbers aren&rsquo;t too impressive just yet. Baozun&rsquo;s annual revenues for 2023, which includes 1.3 billion yuan from Gap China, rose just 5% to 8.8 billion yuan ($1.2 billion). The company&rsquo;s core business providing e-commerce services to other brands slumped by 5% to 5.5 billion yuan, while revenue from product sales through e-commerce tumbled by an even larger 21% to 2 billion yuan.
Within the product sales category, revenue from appliance sales was down by 29%, and electronics was down by 56%, reflecting weak buying sentiment in China as consumers avoid big-ticket items.
The company lost 278.4 million yuan for the year, narrowing from a 653 million yuan loss in 2022. The company&rsquo;s Brand Management unit, which mostly includes the Gap China operation, posted a 188 million yuan adjusted operating loss for the year. The chain closed 86 stores before the acquisition, and Baozun inherited operating losses from the chain.&nbsp;
Baozun&rsquo;s transformation comes amid painful changes taking place in China&rsquo;s e-commerce realm, which is showing signs of maturing after years of strong growth. Major platforms, from Alibaba&rsquo;s Tmall to Tencent&rsquo;s WeChat Channels, are struggling with weak consumer sentiment domestically. Luxury foreign brands that were once one of Baozun&rsquo;s main client groups, have also been facing new competition from home-grown luxury brands.
Baozun began its business in 2007 with a smart idea &ndash; offering back-office functions to big-name foreign brands looking to tap China&rsquo;s rising e-commerce wave at that time. The company&rsquo;s main partner for its core e-commerce services business is Alibaba, which owns 14.4 % of Baozun. Its dependence on Alibaba eventually became a liability by limiting Baozun&rsquo;s growth opportunities, and the company later began to diversify by supplying e-commerce services to brand partners across a range of other platforms.
So where do things stand now? Baozun&rsquo;s e-commerce division has responded to the disruptive impact of Douyin, the domestic version of short video sensation TikTok, in the domestic e-commerce ecosystem by launching a &ldquo;Creative Content to Commerce&rdquo; studios and by acquiring Location, a top-tier Douyin partner, according to the annual report.
Baozun Brand Management has been revamped from 70 historical systems into a single integrated operating platform, which will be the foundation for that unit&rsquo;s future growth. Baozun has worked hard to shed the discount brand image associated with Gap stores, and implemented a new &ldquo;China for China&rdquo; brand philosophy.
The initial major piece of Baozun International is Authentic Brands&rsquo; Hunter brand, with Baozun holding intellectual property rights to the brand in Greater China and Southeast Asia. Baozun International has hired 150 employees across Singapore, Malaysia, Thailand, South Korea, the Philippines, Hong Kong and Taiwan. It will introduce the Hunter brand, famous for its outdoor wear and rubber Wellington boots, into Singapore and Malaysia this year.
The international unit has formed a similar collaboration with Japan&rsquo;s Honda Motor Co., which will launch in Singapore and Malaysia later this year, according to Qiu, adding the pair will work together with both online and offline initiatives.
Baozun&rsquo;s current price to sales (P/S) ratio of 0.13 looks quite depressed compared to domestic competitor&nbsp;Weimob&nbsp;(2013.HK), which trades at 1.38. Global peers&nbsp;Salesforce&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>) and&nbsp;Shopify(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shop#NYSE">SHOP</a>) both trade much higher with ratios of 7.81 and 13.58, respectively. Baozun&rsquo;s depressed valuation may explain why six of seven analysts canvassed by Yahoo Finance rate the company as a &ldquo;strong buy&rdquo; or &ldquo;buy.&rdquo; And at least one broker, Daiwa Capital, has recently upgraded the stock to a &ldquo;buy.&rdquo;
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Asia

Penny Stocks

General

BABA

BZUN

SHOP

Is Baozun's Risky Leap Into Brand Management Starting To Pay Off?

Whales with a lot of money to spend have taken a noticeably bearish stance on Salesforce.
Looking at options history for Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) we detected 17 trades.
If we consider the specifics of each trade, it is accurate to state that 41% of the investors opened trades with bullish expectations and 47% with bearish.
From the overall spotted trades, 4 are puts, for a total amount of $295,628 and 13, calls, for a total amount of $888,921.
<h3>What's The Price Target?</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $200.0 and $410.0 for Salesforce, spanning the last three months.
<h3>Analyzing Volume &amp; Open Interest</h3>
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Salesforce's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Salesforce's substantial trades, within a strike price spectrum from $200.0 to $410.0 over the preceding 30 days.
<h3>Salesforce Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713982580_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th style="text-align: right;">Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>03/21/25</td>
<td>$18.15</td>
<td>$18.05</td>
<td>$18.15</td>
<td>$330.00</td>
<td>$168.7K</td>
<td style="text-align: right;">145</td>
<td style="text-align: right;">8</td>
</tr>
<tr>
<td>CRM</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/20/25</td>
<td>$45.15</td>
<td>$44.0</td>
<td>$44.0</td>
<td>$300.00</td>
<td>$158.4K</td>
<td style="text-align: right;">397</td>
<td style="text-align: right;">40</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>03/21/25</td>
<td>$67.35</td>
<td>$65.8</td>
<td>$66.5</td>
<td>$230.00</td>
<td>$133.0K</td>
<td style="text-align: right;">16</td>
<td style="text-align: right;">10</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>12/20/24</td>
<td>$21.85</td>
<td>$21.65</td>
<td>$21.65</td>
<td>$300.00</td>
<td>$99.5K</td>
<td style="text-align: right;">146</td>
<td style="text-align: right;">64</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$70.95</td>
<td>$68.5</td>
<td>$69.0</td>
<td>$230.00</td>
<td>$69.0K</td>
<td style="text-align: right;">16</td>
<td style="text-align: right;">10</td>
</tr>
</tbody>
</table>

<h3>About Salesforce</h3>
Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Following our analysis of the options activities associated with Salesforce, we pivot to a closer look at the company's own performance.
<h3>Where Is Salesforce Standing Right Now?</h3>
<ul>
<li>Trading volume stands at 1,846,367, with CRM's price up by 0.26%, positioned at $277.41.</li>
<li>RSI indicators show the stock to be may be approaching oversold.</li>
<li>Earnings announcement expected in 35 days.</li>
</ul>
<h3>Professional Analyst Ratings for Salesforce</h3>
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $351.0.
<ul>
<li>An analyst from Stifel persists with their Buy rating on Salesforce, maintaining a target price of $350. </li>
<li>Reflecting concerns, an analyst from RBC Capital lowers its rating to Outperform with a new price target of $350.</li>
<li>An analyst from Needham downgraded its action to Buy with a price target of $345. </li>
<li>Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for Salesforce, targeting a price of $360. </li>
<li>In a cautious move, an analyst from RBC Capital downgraded its rating to Outperform, setting a price target of $350. </li>
</ul>
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Salesforce options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.

Looking At Salesforce's Recent Unusual Options Activity

International Business Machines Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) is reportedly on the verge of acquiring cloud software provider&nbsp;HashiCorp&nbsp;Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HCP#NYSE">HCP</a>), signaling potential growth for both entities.
An acquisition of HashiCorp would likely entail a premium above its current stock value,&nbsp;<a target="_blank" href="https://www.wsj.com/business/deals/ibm-nears-deal-for-cloud-software-provider-cf146448?mod=lead_feature_below_a_pos1" rel="noreferrer noopener">reported&nbsp;</a>The&nbsp;Wall Street Journal.
Citing sources familiar with the matter, the report suggested that a deal for HashiCorp is likely to materialize soon, although there&#8217;s a possibility it may not proceed.
HashiCorp, headquartered in San Francisco, specializes in cloud infrastructure setup, boasting partnerships with numerous tech giants, including&nbsp;Cisco Systems Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>),&nbsp;RedHat&nbsp;(owned by IBM), and&nbsp;Datadog Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DDOG#NASDAQ">DDOG</a>).
As per the report, IBM is undergoing a strategic shift towards&nbsp;hybrid-cloud&nbsp;and&nbsp;artificial-intelligence&nbsp;domains under the leadership of CEO Arvind Krishna.
The company&#8217;s recent endeavors include ventures into quantum computing and blockchain technologies,&nbsp;evident&nbsp;from its $5 billion acquisition of software firm&nbsp;Apptio&nbsp;last year, enhancing its automation capabilities.
Recent reports indicate&nbsp;Salesforce Inc&#8217;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) withdrawal from negotiations to acquire&nbsp;Informatica Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFA#NYSE">INFA</a>), signaling a&nbsp;<a target="_blank" href="https://www.benzinga.com/m-a/24/04/38357035/whats-going-on-with-salesforce-and-informatica-stock-monday" rel="noreferrer noopener">cautious approach in the sector.</a>
Read Next:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38391805/ibms-moment-of-truth-as-earnings-expected-to-impress-with-strong-ai-influence-analy" rel="noreferrer noopener">IBM&#8217;s Moment Of Truth As Earnings Expected To Impress With Strong AI Influence, Analyst Says</a>
Price Action: HCP closed higher by 18.7% at $29.15 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Equities

CSCO

DDOG

INFA

Strategic Shift: IBM Reportedly Eyes HashiCorp Acquisition

Salesforce Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) advocates for increased environmental regulation of artificial intelligence, pointing out the technology sector&#8217;s high energy usage and lack of emissions reporting.&nbsp;
On Monday, the software developer announced its intention to push lawmakers and regulators to develop legislation that mandates AI emissions disclosure using standardized measurement and reporting metrics.
Megan Lorenzen, Salesforce&#8217;s director of climate and energy, emphasized AI&#8217;s dual potential to worsen or mitigate environmental challenges.&nbsp;
Also&nbsp;Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38225392/salesforce-leverages-ai-and-data-cloud-for-future-expansion-eyes-significant-margin" rel="noreferrer noopener">Salesforce Leverages AI and Data Cloud for Future Expansion, Eyes Significant Margin Gains and Sustained Growth, Analyst Says</a>
Salesforce specifically urges companies that use general-purpose AI models to publicly report their energy efficiency and carbon footprints using standardized metrics, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/articles/salesforce-calls-for-ai-emissions-regulations-as-concerns-grow-over-tech-sectors-carbon-footprint-dc9c016f?mod=tech_lead_pos2" rel="noreferrer noopener">reports</a>.&nbsp;
According to Lorenzen, such transparency will improve efficiencies over time and enable users to make more informed decisions regarding AI and energy consumption.
Moreover, Salesforce sees these disclosures as essential to achieving a net-zero future and considers them ideal while assessing the risks of high-impact AI models.&nbsp;
<a target="_blank" href="https://www.benzinga.com/m-a/24/04/38357035/whats-going-on-with-salesforce-and-informatica-stock-monday" rel="noreferrer noopener">Also this week</a>, Salesforce dumped its acquisition discussions with&nbsp;Informatica Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFA#NYSE">INFA</a>) after disagreeing on the merger terms.
The deal could have resulted in one of Salesforce&#8217;s most significant acquisitions.
Salesforce&nbsp;stock gained 41% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;SmartETFs Advertising &amp; Marketing Technology ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRAD#NYSE">MRAD</a>).
Price Actions:&nbsp;CRM shares traded lower by 0.33% at $272.92&nbsp;at&nbsp;the last check Tuesday.&nbsp;
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy of Salesforce

Government

Regulations

AAPL

Salesforce Pushes for Transparency in AI Emissions Reporting

Salesforce Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) ended its&nbsp;<a target="_blank" href="https://www.benzinga.com/m-a/24/04/38247266/salesforce-stock-is-sliding-monday-whats-going-on" rel="noreferrer noopener">acquisition discussions with</a>&nbsp;data-management software company&nbsp;Informatica Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFA#NYSE">INFA</a>) after failing to agree on terms.
The negotiations, which were in advanced stages earlier in April, could have resulted in one of Salesforce&#8217;s largest acquisitions if successful, Reuters cites familiar sources.
Informatica&#8217;s stock price declined after the report, while Salesforce&#8217;s stock price went upwards.
Based on a report from the Wall Street Journal, Salesforce was considering purchasing Informatica at a mid-$30s per share price.&nbsp;
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22042618/newplot-21.png" alt="" class="wp-image-301745" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22042618/newplot-21.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/22042618/newplot-21-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38225392/salesforce-leverages-ai-and-data-cloud-for-future-expansion-eyes-significant-margin" rel="noreferrer noopener">Salesforce Leverages AI and Data Cloud for Future Expansion, Eyes Significant Margin Gains and Sustained Growth, Analyst Says</a>
Informatica&#8217;s stock, which was at $38.48 when the acquisition talks were first revealed on April 12, closed at $35.19 on Friday.&nbsp;
The price puts the value of Informatica, based in Redwood City, California, at approximately $11.2 billion, debt included.
Informatica, founded in 1993, provides cloud-based, subscription data management services and automation solutions to over 5,000 active customers, including Unilever and Deloitte.&nbsp;
Salesforce faced criticism for its acquisition strategy from activist investors such as ValueAct Capital and Elliott Management in early 2023, leading to cost reductions, increased share repurchases, and the dissolution of its mergers and acquisitions board committee.&nbsp;
Salesforce has acquired numerous companies over the years, including Tableau Software for $15.7 billion in 2019 and Slack Technologies for nearly $28 billion in 2020, marking its most significant acquisition.
Earlier,&nbsp;Nvidia Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) plan to SNAP British chip designer&nbsp;Arm Holdings Plc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) succumbed to regulatory opposition. Multiple Big Tech acquisition deals drew global regulatory attention&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37890748/vodafone-and-three-uk-merger-faces-cma-scrutiny-over-competition-concerns" rel="noreferrer noopener">over antitrust concerns</a>.
Informatica stock gained over 127% in the last 12 months. Salesforce stock gained 39%.
Price Actions:&nbsp;INFA shares traded lower by 5.94% at $33.10 premarket on the last check Monday. CRM shares traded higher by 3.11% at $278.78.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/02/37317330/salesforces-q4-earnings-potential-bolstered-by-generative-ai-and-market-optimism-analysts-foreca" rel="noreferrer noopener">Salesforce&#8217;s Q4 Earnings Potential Bolstered by Generative AI and Market Optimism, Analysts Forecast</a>
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy of Salesforce

NVDA

What's Going On With Salesforce and Informatica Stock Monday?

IHG Hotels &amp; Resorts will become the first global hospitality company to standardize on Salesforce Loyalty Management
Today, Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>), the #1 AI CRM, announced an expanded relationship with <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ihgplc.com%2Fen%2Fnews-and-media%2Fnews-releases&amp;esheet=53939508&amp;newsitemid=20240422149371&amp;lan=en-US&amp;anchor=IHG+Hotels+%26amp%3B+Resorts&amp;index=1&amp;md5=691735e29090c4b5940e092fafcf1d25">IHG Hotels &amp; Resorts</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHG#NYSE">IHG</a>, LON: IHG)))), one of the world's leading hotel companies with more than 6,000 hotels across 19 global brands, to drive guest loyalty through its IHG One Rewards program and unlock efficiencies, deeper personalization, and faster innovation.
Customer expectations are changing, with <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.salesforce.com%2Fnews%2Fstories%2Fcustomer-spending%2F&amp;esheet=53939508&amp;newsitemid=20240422149371&amp;lan=en-US&amp;anchor=65%25+of+consumers&amp;index=2&amp;md5=8c97b8c3f75fb22cea29a24bd7703206">65% of consumers</a> saying they will remain loyal to companies that offer more personalized experiences. To meet these expectations, IHG is standardizing its CRM on the <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.salesforce.com%2Fnews%2Fpress-releases%2F2023%2F09%2F12%2Fsalesforce-platform-news-dreamforce%2F&amp;esheet=53939508&amp;newsitemid=20240422149371&amp;lan=en-US&amp;anchor=Einstein+1+Platform&amp;index=3&amp;md5=3f146b1d472267f92f82a557c0db0746">Einstein 1 Platform</a>, which brings CRM, AI, data, and trust on a single, unified platform to drive customer loyalty, more tailored guest experiences, and greater efficiencies.
"As we continue to enhance the IHG One Rewards loyalty program, one of our top priorities is ensuring our guests have a booking and stay experience that is customized to their individual travel needs," said Heather Balsley, Global Chief Commercial &amp; Marketing Officer at IHG Hotels &amp; Resorts. "Our collaboration with Salesforce will enable us to further enhance the technology, tools, teams, and solutions that power our loyalty program, allowing us to provide personalized content and offerings that ultimately drive a deeper connection to our most valued guests."
"By bringing more data into Salesforce, IHG Hotels &amp; Resorts is able to garner greater insights that will contribute to an unparalleled experience for guests and hotel owners," said Jeff Amann, EVP &amp; GM, Salesforce Industries. "With the Einstein 1 Platform, IHG is delivering joy for its guests today while setting itself up to leverage new technologies like AI that help optimize guest interactions in the future."

IHG Hotels & Resorts Will Become The First Global Hospitality Company To Standardize On Salesforce Loyalty Management

Jefferies analyst Brent Thill maintains Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) with a Buy and raises the price target from $350 to $360.

Jefferies Maintains Buy on Salesforce, Raises Price Target to $360

WIIM

Salesforce shares are trading higher following a report suggesting the company's talks to acquire Informatica have eased.

-Wall Street Journal, Citing Sources
&nbsp;
<a href="https://www.wsj.com/business/deals/salesforces-talks-to-buy-informatica-fizzle-4f6f111a" title="https://www.wsj.com/business/deals/salesforces-talks-to-buy-informatica-fizzle-4f6f111a">https://www.wsj.com/business/deals/salesforces-talks-to-buy-informatica-fizzle-4f6f111a</a>

Salesforce Talks To Acquire Informatica Fizzle Due To Disagreement On Terms

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Below are some instances of options activity happening in the Information Technology sector: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>NVDA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/19/24</td>
<td>$850.00</td>
<td>$32.8K</td>
<td>10.8K</td>
<td>50.6K</td>
</tr>
<tr>
<td>MRVL</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>07/19/24</td>
<td>$72.50</td>
<td>$185.7K</td>
<td>13.3K</td>
<td>10.7K</td>
</tr>
<tr>
<td>AAPL</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/26/24</td>
<td>$165.00</td>
<td>$113.5K</td>
<td>7.7K</td>
<td>6.2K</td>
</tr>
<tr>
<td>BSY</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>05/17/24</td>
<td>$50.00</td>
<td>$26.4K</td>
<td>4.0K</td>
<td>3.5K</td>
</tr>
<tr>
<td>SMCI</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/19/24</td>
<td>$990.00</td>
<td>$144.8K</td>
<td>642</td>
<td>1.2K</td>
</tr>
<tr>
<td>TSM</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>04/26/24</td>
<td>$135.00</td>
<td>$49.0K</td>
<td>1.2K</td>
<td>1.1K</td>
</tr>
<tr>
<td>CRM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/19/24</td>
<td>$275.00</td>
<td>$46.5K</td>
<td>821</td>
<td>459</td>
</tr>
<tr>
<td>AKAM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$100.00</td>
<td>$39.7K</td>
<td>3.1K</td>
<td>437</td>
</tr>
<tr>
<td>SNOW</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$125.00</td>
<td>$55.4K</td>
<td>3.4K</td>
<td>235</td>
</tr>
<tr>
<td>MSTR</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>04/19/24</td>
<td>$1250.00</td>
<td>$240.0K</td>
<td>465</td>
<td>209</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding NVDA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), we observe a call option sweep with bullish sentiment. It expires in 1 day(s) on April 19, 2024. Parties traded 45 contract(s) at a $850.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $32.8K, with a price of $730.0 per contract. There were 10827 open contracts at this strike prior to today, and today 50621 contract(s) were bought and sold. 
• Regarding MRVL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), we observe a call option sweep with bullish sentiment. It expires in 92 day(s) on July 19, 2024. Parties traded 509 contract(s) at a $72.50 strike. This particular call needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $185.7K, with a price of $365.0 per contract. There were 13399 open contracts at this strike prior to today, and today 10774 contract(s) were bought and sold. 
• Regarding AAPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), we observe a put option sweep with bearish sentiment. It expires in 8 day(s) on April 26, 2024. Parties traded 700 contract(s) at a $165.00 strike. This particular put needed to be split into 31 different trades to become filled. The total cost received by the writing party (or parties) was $113.5K, with a price of $163.0 per contract. There were 7711 open contracts at this strike prior to today, and today 6283 contract(s) were bought and sold. 
• For BSY (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BSY#NASDAQ">BSY</a>), we notice a call option sweep that happens to be bullish, expiring in 29 day(s) on May 17, 2024. This event was a transfer of 60 contract(s) at a $50.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $26.4K, with a price of $440.0 per contract. There were 4040 open contracts at this strike prior to today, and today 3536 contract(s) were bought and sold. 
• For SMCI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), we notice a call option sweep that happens to be bearish, expiring in 1 day(s) on April 19, 2024. This event was a transfer of 181 contract(s) at a $990.00 strike. This particular call needed to be split into 9 different trades to become filled. The total cost received by the writing party (or parties) was $144.8K, with a price of $800.0 per contract. There were 642 open contracts at this strike prior to today, and today 1206 contract(s) were bought and sold. 
• For TSM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), we notice a put option trade that happens to be neutral, expiring in 8 day(s) on April 26, 2024. This event was a transfer of 100 contract(s) at a $135.00 strike. The total cost received by the writing party (or parties) was $49.0K, with a price of $490.0 per contract. There were 1247 open contracts at this strike prior to today, and today 1122 contract(s) were bought and sold. 
• Regarding CRM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>), we observe a put option sweep with bearish sentiment. It expires in 1 day(s) on April 19, 2024. Parties traded 100 contract(s) at a $275.00 strike. This particular put needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $46.5K, with a price of $465.0 per contract. There were 821 open contracts at this strike prior to today, and today 459 contract(s) were bought and sold. 
• For AKAM (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AKAM#NASDAQ">AKAM</a>), we notice a call option sweep that happens to be bearish, expiring in 274 day(s) on January 17, 2025. This event was a transfer of 29 contract(s) at a $100.00 strike. This particular call needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $39.7K, with a price of $1370.0 per contract. There were 3139 open contracts at this strike prior to today, and today 437 contract(s) were bought and sold. 
• Regarding SNOW (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>), we observe a put option trade with bullish sentiment. It expires in 274 day(s) on January 17, 2025. Parties traded 46 contract(s) at a $125.00 strike. The total cost received by the writing party (or parties) was $55.4K, with a price of $1205.0 per contract. There were 3438 open contracts at this strike prior to today, and today 235 contract(s) were bought and sold. 
• Regarding MSTR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), we observe a put option trade with neutral sentiment. It expires in 1 day(s) on April 19, 2024. Parties traded 50 contract(s) at a $1250.00 strike. The total cost received by the writing party (or parties) was $240.0K, with a price of $4800.0 per contract. There were 465 open contracts at this strike prior to today, and today 209 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

AKAM

MRVL

MSTR

SMCI

SNOW

10 Information Technology Stocks With Whale Alerts In Today's Session

Financial giants have made a conspicuous bullish move on Salesforce. Our analysis of options history for Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) revealed 11 unusual trades.
Delving into the details, we found 54% of traders were bullish, while 45% showed bearish tendencies. Out of all the trades we spotted, 4 were puts, with a value of $113,630, and 7 were calls, valued at $446,526.
<h3>What's The Price Target?</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $150.0 and $440.0 for Salesforce, spanning the last three months.
<h3>Insights into Volume &amp; Open Interest</h3>
In terms of liquidity and interest, the mean open interest for Salesforce options trades today is 503.82 with a total volume of 673.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Salesforce's big money trades within a strike price range of $150.0 to $440.0 over the last 30 days.
<h3>Salesforce Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713453436_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th style="text-align: right;">Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$19.0</td>
<td>$18.65</td>
<td>$18.65</td>
<td>$330.00</td>
<td>$132.4K</td>
<td style="text-align: right;">53</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$139.3</td>
<td>$138.3</td>
<td>$139.3</td>
<td>$150.00</td>
<td>$69.6K</td>
<td style="text-align: right;">30</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/16/26</td>
<td>$59.7</td>
<td>$59.3</td>
<td>$59.5</td>
<td>$270.00</td>
<td>$59.5K</td>
<td style="text-align: right;">133</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/19/24</td>
<td>$2.94</td>
<td>$2.8</td>
<td>$2.88</td>
<td>$272.50</td>
<td>$57.7K</td>
<td style="text-align: right;">255</td>
<td style="text-align: right;">207</td>
</tr>
<tr>
<td>CRM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$3.35</td>
<td>$3.25</td>
<td>$3.25</td>
<td>$440.00</td>
<td>$54.9K</td>
<td style="text-align: right;">156</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>

<h3>About Salesforce</h3>
Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Following our analysis of the options activities associated with Salesforce, we pivot to a closer look at the company's own performance.
<h3>Salesforce's Current Market Status</h3>
<ul>
<li>Currently trading with a volume of 1,068,422, the CRM's price is down by -0.88%, now at $273.88. </li>
<li>RSI readings suggest the stock is currently may be oversold.</li>
<li>Anticipated earnings release is in 41 days.</li>
</ul>
<h3>What Analysts Are Saying About Salesforce</h3>
5 market experts have recently issued ratings for this stock, with a consensus target price of $339.0.
<ul>
<li>Consistent in their evaluation, an analyst from Piper Sandler keeps a Neutral rating on Salesforce with a target price of $300. </li>
<li>Reflecting concerns, an analyst from RBC Capital lowers its rating to Outperform with a new price target of $350.</li>
<li>An analyst from RBC Capital has revised its rating downward to Outperform, adjusting the price target to $350. </li>
<li>An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $345. </li>
<li>An analyst from Stifel persists with their Buy rating on Salesforce, maintaining a target price of $350. </li>
</ul>
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Salesforce options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.

Smart Money Is Betting Big In CRM Options

In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) against its key competitors in the Software industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
<h3>Salesforce Background</h3>
Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
<table>
<thead>
<tr>
<th>Company</th>
<th>P/E</th>
<th>P/B</th>
<th>P/S</th>
<th>ROE</th>
<th>EBITDA (in billions)</th>
<th>Gross Profit (in billions)</th>
<th>Revenue Growth</th>
</tr>
</thead>
<tbody>
<tr>
<td>Salesforce Inc</td>
<td>66.05</td>
<td>4.51</td>
<td>7.83</td>
<td>2.46%</td>
<td>$2.75</td>
<td>$7.14</td>
<td>10.77%</td>
</tr>
<tr>
<td>Adobe Inc</td>
<td>45.49</td>
<td>13.80</td>
<td>10.94</td>
<td>3.88%</td>
<td>$1.21</td>
<td>$4.59</td>
<td>11.32%</td>
</tr>
<tr>
<td>SAP SE</td>
<td>55.06</td>
<td>4.59</td>
<td>6.41</td>
<td>3.05%</td>
<td>$2.32</td>
<td>$6.2</td>
<td>5.02%</td>
</tr>
<tr>
<td>Intuit Inc</td>
<td>62.46</td>
<td>10.13</td>
<td>11.49</td>
<td>2.08%</td>
<td>$0.6</td>
<td>$2.53</td>
<td>11.34%</td>
</tr>
<tr>
<td>Synopsys Inc</td>
<td>59.70</td>
<td>12.37</td>
<td>13.70</td>
<td>7.01%</td>
<td>$0.53</td>
<td>$1.32</td>
<td>21.15%</td>
</tr>
<tr>
<td>Cadence Design Systems Inc</td>
<td>78.75</td>
<td>24.09</td>
<td>20.06</td>
<td>9.94%</td>
<td>$0.41</td>
<td>$0.96</td>
<td>18.75%</td>
</tr>
<tr>
<td>Workday Inc</td>
<td>49.44</td>
<td>8.42</td>
<td>9.41</td>
<td>16.16%</td>
<td>$0.24</td>
<td>$1.46</td>
<td>16.75%</td>
</tr>
<tr>
<td>Roper Technologies Inc</td>
<td>41.36</td>
<td>3.23</td>
<td>9.16</td>
<td>2.26%</td>
<td>$0.72</td>
<td>$1.13</td>
<td>12.76%</td>
</tr>
<tr>
<td>Autodesk Inc</td>
<td>54.47</td>
<td>26.32</td>
<td>8.97</td>
<td>16.9%</td>
<td>$0.35</td>
<td>$1.34</td>
<td>3.89%</td>
</tr>
<tr>
<td>Palantir Technologies Inc</td>
<td>243.11</td>
<td>13.93</td>
<td>22.60</td>
<td>2.8%</td>
<td>$0.11</td>
<td>$0.5</td>
<td>19.61%</td>
</tr>
<tr>
<td>Datadog Inc</td>
<td>906.64</td>
<td>20.80</td>
<td>20.89</td>
<td>2.82%</td>
<td>$0.07</td>
<td>$0.48</td>
<td>25.62%</td>
</tr>
<tr>
<td>Ansys Inc</td>
<td>57.03</td>
<td>5.29</td>
<td>12.58</td>
<td>5.29%</td>
<td>$0.37</td>
<td>$0.74</td>
<td>15.99%</td>
</tr>
<tr>
<td>AppLovin Corp</td>
<td>73.80</td>
<td>19.08</td>
<td>7.99</td>
<td>14.58%</td>
<td>$0.37</td>
<td>$0.68</td>
<td>35.73%</td>
</tr>
<tr>
<td>MicroStrategy Inc</td>
<td>47.53</td>
<td>10.23</td>
<td>41.92</td>
<td>5.93%</td>
<td>$-0.04</td>
<td>$0.1</td>
<td>-6.09%</td>
</tr>
<tr>
<td>PTC Inc</td>
<td>90.27</td>
<td>7.61</td>
<td>9.81</td>
<td>2.42%</td>
<td>$0.16</td>
<td>$0.44</td>
<td>18.09%</td>
</tr>
<tr>
<td>Zoom Video Communications Inc</td>
<td>28.64</td>
<td>2.27</td>
<td>4.04</td>
<td>3.87%</td>
<td>$0.2</td>
<td>$0.87</td>
<td>2.56%</td>
</tr>
<tr>
<td>Tyler Technologies Inc</td>
<td>102.89</td>
<td>5.77</td>
<td>8.75</td>
<td>1.34%</td>
<td>$0.09</td>
<td>$0.21</td>
<td>6.35%</td>
</tr>
<tr>
<td>Bentley Systems Inc</td>
<td>48.91</td>
<td>16.61</td>
<td>13.24</td>
<td>22.81%</td>
<td>$0.05</td>
<td>$0.24</td>
<td>8.26%</td>
</tr>
<tr>
<td>NICE Ltd</td>
<td>45.30</td>
<td>4.37</td>
<td>6.45</td>
<td>2.49%</td>
<td>$0.19</td>
<td>$0.42</td>
<td>9.61%</td>
</tr>
<tr>
<td>Manhattan Associates Inc</td>
<td>81.91</td>
<td>51.11</td>
<td>15.57</td>
<td>19.96%</td>
<td>$0.06</td>
<td>$0.13</td>
<td>20.27%</td>
</tr>
<tr>
<td>Dynatrace Inc</td>
<td>67.45</td>
<td>6.89</td>
<td>9.70</td>
<td>2.3%</td>
<td>$0.05</td>
<td>$0.3</td>
<td>22.74%</td>
</tr>
<tr>
<td>Average</td>
<td>112.01</td>
<td>13.35</td>
<td>13.18</td>
<td>7.39%</td>
<td>$0.4</td>
<td>$1.23</td>
<td>13.99%</td>
</tr>
</tbody>
</table>
<style>
 table {
 width: 100%;
 border-collapse: collapse;
 font-family: Arial, sans-serif;
 font-size: 14px;
 }

 th, td {
 padding: 8px;
 text-align: left;
 }

 th {
 background-color: #293a5a;
 color: #fff;
 text-align: left;
 }

 tr:nth-child(even) {
 background-color: #f2f4f8;
 }

 tr:hover {
 background-color: #e1e4ea;
 }

 td:nth-child(3), td:nth-child(5) {
 text-align: left;
 }

 .dividend-amount {
 font-weight: bold;
 color: #0d6efd;
 }

 .dividend-frequency {
 font-size: 12px;
 color: #6c757d;
 }
 </style>By conducting an in-depth analysis of Salesforce, we can identify the following trends: 
<ul>
<li>
At 66.05, the stock's Price to Earnings ratio is 0.59x less than the industry average, suggesting favorable growth potential.
</li>
<li>
With a Price to Book ratio of 4.51, significantly falling below the industry average by 0.34x, it suggests undervaluation and the possibility of untapped growth prospects.
</li>
<li>
With a relatively low Price to Sales ratio of 7.83, which is 0.59x the industry average, the stock might be considered undervalued based on sales performance.
</li>
<li>
With a Return on Equity (ROE) of 2.46% that is 4.93% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
</li>
<li>
The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $2.75 Billion, which is 6.88x above the industry average, indicating stronger profitability and robust cash flow generation.
</li>
<li>
Compared to its industry, the company has higher gross profit of $7.14 Billion, which indicates 5.8x above the industry average, indicating stronger profitability and higher earnings from its core operations.
</li>
<li>
The company's revenue growth of 10.77% is significantly below the industry average of 13.99%. This suggests a potential struggle in generating increased sales volume.
</li>
</ul>
<h3>Debt To Equity Ratio</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713366025_0.png" alt="debt to equity" />
The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When comparing Salesforce with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
<ul>
<li>
Among its top 4 peers, Salesforce has a stronger financial position with a lower debt-to-equity ratio of 0.21.
</li>
<li>
This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.
</li>
</ul>
<h3>Key Takeaways</h3>
For Salesforce, the PE, PB, and PS ratios are all low compared to its peers in the Software industry, indicating potential undervaluation. However, the low ROE suggests lower profitability compared to industry peers. On the other hand, the high EBITDA and gross profit figures reflect strong operational performance. The low revenue growth rate may be a concern for future prospects compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Market Analysis: Salesforce And Competitors In Software Industry

The commercial real estate industry continues to reel from the impacts of remote work <a href="http://benzinga.com/analyst-ratings/analyst-color/24/04/38219988/economists-warn-feds-inflation-battle-could-trigger-recession-have-to-increase-the-">and escalating inflation.</a>
Elevated interest rates and a widespread trend toward reducing office space across various industries have left the sector facing unprecedented amounts of vacant office space.
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38273192/goldman-sachs-boasts-near-perfect-q1-results-5-analysts-zero-in-on-core-strengths">On an earnings call on Monday</a>, Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) CEO David M. Solomon mentioned the poor state of commercial real estate as one of the main factors slowing U.S. growth, along with continuing concerns about inflation and escalating geopolitical tensions.
The sector has become especially sensitive to speculation around interest rates. Last month, a hint of rate cuts by the Fed <a href="https://www.benzinga.com/real-estate/reit/24/03/37882885/10-real-estate-stocks-move-on-thursday-fed-rate-cut-possibility-sparks-rally-for-troubled-sector">had several stocks and funds jump through the roof</a> in a show of volatility that's unknown to a sector normally praised for offering stability against riskier markets.
Just days later, S&amp;P Global Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPGI#NYSE">SPGI</a>) <a href="https://www.benzinga.com//node/37950136">decided to downgrade five regional banks</a> based on risks associated with the unstable commercial real estate market.
Operational shifts for big tech companies are partly fueling the commercial real estate slump. The change to remote or hybrid work, which has become the new status quo in the tech sector after the strike of COVID-19, has left many companies juggling more office space than they need.
That's added to a massive trend of layoffs which continued to be common practice in<a href="https://www.benzinga.com/markets/equities/24/01/36874447/tech-layoffs-up-over-300-month-over-month-in-january-3-companies-with-the-most-employees-laid-of"> the tech sector during the first quarter of 2024</a>, after a slight downtick during the second half of 2023.
Late last month, Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) said it plans to cut $1.3 billion <a href="https://www.benzinga.com/news/24/03/37983953/amazons-strategic-real-estate-plan-to-reduce-vacancy-rate-and-enhance-workspace-efficiency">by reducing office space and ending leases early</a>. The tech behemoth faces a 33.8% vacancy rate in its offices after laying off over 27,000 employees in 2022 and 2023.
According to a Wall Street Journal <a href="https://www.wsj.com/real-estate/commercial/big-tech-is-downsizing-work-space-in-another-blow-to-office-real-estate-67b4685c?mod=hp_featst_pos3">report</a>, Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) is subleasing some of its Silicon Valley office space, while Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) has reduced leases for its own office space. The Facebook owner has been slashing office space all around the globe this year, <a href="https://www.benzinga.com//node/37024306">including in locations like Singapore</a> and <a href="https://www.benzinga.com//node/34900681">London</a>. Meanwhile, Salesforce Inc's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) SEC filings show that the company is using half the office space it was using one year ago in the San Francisco area.
Read also: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/04/38278182/powell-delays-fed-rate-cuts-we-need-greater-confidence-in-inflation-2-year-yields-spik">Powell Delays Fed Rate Cuts—&#8217;We Need Greater Confidence In Inflation&#8217;; 2-Year Yields Spike To 5%</a>
The pullback from tech is proving especially painful for the real estate sector when it adds losses from other common office-dwelling sectors, including law firms and financial companies.
By January, a Moody's Analytics report put the average<a href="https://www.benzinga.com/markets/equities/24/01/36542862/empty-spaces-us-office-vacancies-rise-to-highest-levels-in-four-decades"> vacant office space in large cities around the country at 19.6%</a>, the highest it's been since 1979.
Several cities are showcasing extreme levels of office vacancy these days, with San Francisco at a record of 36.7%, compared to just 3.6% before the pandemic. The void is more noticeable in cities associated with the tech industry, including Seattle, New York and Austin. In Seattle, office property transactions <a href="https://www.benzinga.com/news/financing/24/02/37134484/seattles-office-space-dives-98-7-dip-reflects-tech-storm-hybrid-shifts">declined in 2023 a staggering 98.7% year-over-year</a> after almost 45,000 employees were laid off in the area.
On Wells Fargo &amp; Co&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>)<a href="https://www.benzinga.com//node/38219378"> Q1 call last week,</a> CEO Charles W. Scharf said that commercial real estate revenue was down 7% from the previous year, impacted by lower loan demand in that sector.
Yet the executive added that the sector, which is primarily made up of office space, didn't experience significant changes when compared to the last quarter of 2023.
Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), by far the largest real estate ETF by assets under management, is down almost 11% since January, with a 5% drop in the last five days.
Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>) and Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) present very similar trajectories.
However, it's not all bad news for investors in the space. Blackstone Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) President Jon Gray recently said this could be the right time to<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37719939/is-it-time-to-buy-the-commercial-real-estate-dip-the-worlds-biggest-private-equity-"> "buy the dip" on the real estate plunge</a>. The asset manager is optimistic about the long term future of commercial real estate when considering that the Fed will sooner or later have to reduce rates.
Once that happens, the diminished supply of new developments following this slowdown, combined with cheaper cost of borrowing, could kickstart the industry upwards once more.
Now read: <a href="https://www.benzinga.com/markets/equities/24/04/38277243/stocks-grapple-with-geopolitical-pressures-gold-eyes-2-400-bitcoin-falls-below-62-000-whats-driv">Stocks Grapple With Geopolitical Pressures, Gold Eyes $2,400, Bitcoin Falls Below $62,000: What&#8217;s Driving Markets Tuesday?</a>
Image generated using artificial intelligence via Midjourney.

Specialty ETFs

ETFs

Real Estate

SCHH

SPGI

XLRE

Tech Layoffs, Remote Work Push Office Vacancies To 19.6%, Highest Since 1979

Wolfe Research analyst Alex Zukin reiterates Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) with a Outperform and maintains $365 price target.

Wolfe Research Reiterates Outperform on Salesforce, Maintains $365 Price Target

TECB: Not A Good Choice When Compared To Other Traditional Technology ETFs

The price of admission into the artificial intelligence (AI) trade has gone way up over the past year. Still, some tech stocks — like CRM and AVGO ...

CRM, AVGO: 2 Impressive AI Stocks with Room to Run

Top 50 stocks with the highest sensitivity to interest rates changes - GS

The software industry is evolving, with greater adoption of emerging technologies and a more efficient and streamlined software application development process. Let's analyze the fundamentals of software stocks, Adobe (ADBE) and Salesforce (CRM), to determine which stock is a buy, hold, or sell. Read on... The software industry is experiencing substantial growth due to the growing demand for AI and the expansion of the software application sector. The industry's growth is driven by technological advancements and the need for businesses to stay competitive in today's digital age.
The demand for software applications has increased due to significant investments in digitalization across various industries. Gartner expects worldwide software spending to rise <a href="https://www.gartner.com/en/newsroom/press-releases/2024-04-16-gartner-forecast-worldwide-it-spending-to-grow-8-percent-in-2024">13.9% year-over-year</a> to $1.04 trillion in 2024.
The worldwide application development software market is expected to reach $234.70 billion by 2028, growing at a <a href="https://www.statista.com/outlook/tmo/software/application-development-software/">6.9% CAGR</a>. It is also expected to generate $179.90 billion in revenue in 2024. The market for application development software is likely to expand due to the rising need for scalable and customized software applications.
Given this backdrop, let's compare two <a href="https://stocknews.com/category/software-application/">Software - Application</a> stocks, Adobe Inc. (<a href="https://stocknews.com/stock/ADBE/">ADBE</a>) and Salesforce, Inc. (<a href="https://stocknews.com/stock/CRM/">CRM</a>), to understand why CRM will be a better buy than ADBE.
The Case for Adobe Inc. Stock
Adobe Inc. (<a href="https://stocknews.com/stock/ADBE/">ADBE</a>) provides various products and services to professionals, communicators, businesses, and consumers to create, manage, deliver, measure, optimize, engage with, and transact with content and experiences across diverse digital media formats. Its segments include Digital Media, Digital Experience, and Publishing and Advertising.
On April 9, 2024, ADBE unveiled the all-new Frame.io V4, a versatile, quick, and intuitive creative collaboration platform that optimizes and simplifies content development and production workflows. As teams and organizations rush to satisfy the growing demand for video content, creatives and stakeholders at all stages of creation are delayed by disconnected tools and systems.
Frame.io V4 addresses these challenges by providing a centralized hub for collaboration, feedback, and approval processes, ultimately saving time and increasing efficiency in the creative process.
ADBE's stock has gained 25.3% over the past year to close the last trading session at $473.07. However, the stock has declined 24.9% over the past three months.
ADBE's revenue grew at a CAGR of 13.4% over the past three years. On the other hand, its net income shrank at a CAGR of 4.8% over the past three years.
In terms of forward EV/Sales, ADBE is trading at 9.75x, 246.9% higher than the industry average of 2.81x. Likewise, its forward EV/EBIT is trading at 21.18x, 8.5% higher than the 19.50x industry average. Also, its forward EV/EBITDA is trading at 19.69x, 34.5% higher than the 14.50x industry average.
On the other hand, its forward non-GAAP PEG of 1.59% is 17% lower than the 1.91x industry average.
In terms of the trailing-12-month net income margin, ADBE's 24.08% is 807.2% higher than the 2.65% industry average. Likewise, its 34.97% trailing-12-month EBIT margin is 616.4% higher than the industry average of 4.88%. Additionally, its 33.76% trailing-12-month <a href="https://www.investopedia.com/terms/l/levered-free-cash-flow.asp">levered FCF</a> margin is 254.8% higher than the industry average of 9.52%.
For the fiscal first quarter, which ended March 1, 2024, ADBE's total revenue increased 11.2% year-over-year to $5.18 billion. Its gross profit rose 12.2% from the year-ago value to $4.59 billion. Moreover, the company's non-GAAP net income and non-GAAP net income per share grew 17.1% and 17.9% year-over-year to $2.05 billion and $4.48, respectively.
Street expects ADBE's revenue and EPS for the quarter ended May 30, 2024, to increase 9.9% and 12.3% year-over-year to $5.29 billion and $4.39, respectively. The company surpassed the consensus EPS estimates in each of the trailing four quarters.
ADBE's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. It has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has an A grade for Quality and a B for Sentiment. Within the <a href="https://stocknews.com/category/software-application/">Software - Application</a> industry, it is ranked #33 out of 134 stocks. To see the additional grades of ADBE for Growth, Value, Momentum, and Stability, <a href="https://stocknews.com/stock/ADBE/">click here</a>.
The Case for Salesforce, Inc. Stock
Salesforce, Inc. (<a href="https://stocknews.com/stock/CRM/">CRM</a>) is a cloud-based software company. It provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and processes, forecast opportunities, gain insights through analytics and relationship intelligence, and service that enables companies to deliver trusted and highly personalized customer service and support at scale.
CRM's stock has gained 40.3% over the past six months and 39% over the past year to close the last trading session at $275.74.
CRM's revenue grew at a CAGR of 17.9% over the past three years. Also, its total Assets grew at a CAGR of 14.6% during the same period.
In terms of forward non-GAAP P/E, CRM is trading at 28.15x, 17.9% higher than the industry average of 23.87x. Likewise, its forward EV/EBIT is trading at 21.62x, 10.7% higher than the 19.52x industry average. Also, its forward EV/EBITDA is trading at 18.62x, 28.4% higher than the 14.50x industry average. On the other hand, its 1.32x forward non-GAAP PEG is 30.9% lower than the 1.91x industry average.
In terms of the trailing-12-month net income margin, CRM's 11.87% is 347% higher than the 2.65% industry average. Likewise, its 7.01% trailing-12-month Return on Common Equity is 110.7% higher than the 3.33% industry average. Also, its 17.21% trailing-12-month EBIT margin is 252.6% higher than the 4.88% industry average.
CRM's total revenue during the fourth quarter that ended January 31, 2024, came in at $9.29 billion, an increase of 10.8% year over year. Its gross profit improved 13.6% from the year-ago quarter to $7.14 billion.
Moreover, the company's net income and EPS came in at $2.25 billion and $2.29, up 35.9% and 36.3% from the prior-year quarter, respectively. CRM's free cash flow improved 26.7% year over year to $3.26 billion.
Analysts expect CRM's EPS and revenue for the quarter ended April 30, 2024, to increase 40.2% and 10.9% year-over-year to $2.37 and $9.15 billion, respectively. The company surpassed the consensus EPS and revenue estimates in each of the trailing four quarters.
CRM's POWR Ratings reflect its bright prospects. It has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has a B grade for Growth, Sentiment, and Quality. Within the same industry, it is ranked #14. Beyond what we stated above, we also have given CRM grades for Value, Momentum, and Stability. Get all the CRM ratings <a href="https://stocknews.com/stock/CRM/">here</a>.
Adobe (ADBE) vs. Salesforce (CRM) - Buy, Hold, or Sell in May?
The application software industry is rapidly evolving. Generative AI and cloud-native technologies are increasing flexibility, scalability, and cost-efficiency while expanding beyond IT to meet user demands.
Companies like ADBE and CRM, at the forefront of technology innovation, have seen significant growth in recent years due to their focus on developing cutting-edge software solutions for businesses across various industries. Their ability to adapt to changing market trends and customer needs has solidified their positions as industry leaders in the tech sector.
ADBE and CRM look well-positioned to capitalize on the industry's promising prospects. Although both have solid fundamentals, favorable analyst estimates, and robust profitability, CRM is a better choice than ADBE due to its historical growth metrics.
Our research shows that the odds of success increase when one invests in stocks with an overall rating of Strong Buy. View all the top-rated stocks in the Software – Application industry <a href="https://stocknews.com/category/software-application/">here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
CRM shares were trading at $272.56 per share on Tuesday morning, down $3.18 (-1.15%). Year-to-date, CRM has gained 3.72%, versus a 6.99% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/crm-adbe-adobe-adbe-vs-salesforce-crm-buy-hold-or-sell/>Adobe (ADBE) vs. Salesforce (CRM) - Buy, Hold, or Sell in May?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Adobe (ADBE) vs. Salesforce (CRM) - Buy, Hold, or Sell in May?

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) and Alphabet (NASDAQ:<a href="https://investorplace.com/stock-quotes/goog-stock-quote/">GOOG</a>)(NASDAQ:<a href="https://investorplace.com/stock-quotes/googl-stock-quote/">GOOGL</a>) <a href="https://www.bloomberg.com/news/articles/2024-04-26/microsoft-google-gain-after-ai-fuels-cloud-computing-demand?embedded-checkout=true">exceeded Wall Street expectations</a> in their latest quarterly results, driven by a surge in cloud revenue fueled by increased use of artificial intelligence (AI) services, Bloomberg reported. Alphabet&rsquo;s shares soared up to 12%, marking its biggest gain since July 2015 and pushing its valuation past $2 trillion. Meanwhile, Microsoft rose as much as 3.5%. Still, there are some cloud computing stocks for investors to sell in this climate.



The bear case for these companies is that there could be high opportunity costs for holding onto them. Alternatives like MSFT and GOOG could prove to be too attractive. They offer the promise of high returns and being at the forefront of the AI revolution.



On the other hand, some of these cloud computing stocks peaked during the pandemic and failed to return to Earth. That means they are still overvalued in comparison to their long-term growth potential. So here are three cloud computing stocks to avoid.



<h2>Zoom Video Communications (ZM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/zm1600-300x169.jpg" alt="Zoom (ZM) logo on a building"><div>Source: Michael Vi / Shutterstock.com</div></div>Zoom Video Communications (NASDAQ:<a href="https://investorplace.com/stock-quotes/zm-stock-quote/">ZM</a>) may experience challenges in maintaining its rapid growth rate as its post-pandemic reality starts to sink in. ZM reported <a href="https://www.investors.com/news/technology/zm-stock-zoom-earnings-news-q42023/">fourth-quarter earnings and revenue</a> that exceeded expectations. Earnings at $1.42 per share on an adjusted basis were up 16% year-over-year while revenue reached $1.146 billion, a 2.6% increase from the previous year. This outperformance was attributed to the solid adoption of Zoom&rsquo;s new Contact Center offering, upmarket traction, Zoom Phone and recent AI capabilities.



Still, I believe that ZM&rsquo;s <a href="https://stockanalysis.com/stocks/zm/forecast/">valuation is presently too high</a> to justify its stock price at around $62 per share. Its price-to-earnings (P/E) ratio is rich at 29.95 times earnings, not that much different from Microsoft at 35 times. Framing this is that MSFT&rsquo;s growth potential is far higher according to analysts. Its revenue is expected to climb 17% while Zoom is only expected to rise around 5%.



The opportunity cost of holding onto ZM may be too steep when one compares what else the market has to offer, along with it being traded at a premium to its earnings.



<h2>Snowflake (SNOW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/snow-1600-300x169.png" alt="Snowflake symbol and logo at the company corporate headquarters in Silicon Valley. SNOW stock."><div>Source: Sundry Photography / Shutterstock</div></div>Snowflake (NYSE:<a href="https://investorplace.com/stock-quotes/snow-stock-quote/">SNOW</a>) operates in a highly competitive cloud data warehousing market, facing challenges in differentiating its offerings and maintaining profitability.



The cloud data warehousing market is crowded with competitors like Amazon&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>) Redshift, Google BigQuery and Microsoft Azure SQL Data Warehouse. These established players already have a significant market share and robust offerings, making it difficult for Snowflake to differentiate itself.



Also, the underlying technology used in data warehousing solutions has become increasingly standardized. Many competitors offer similar features and functionalities, making an apple-to-apples comparison exceedingly easier.



Perhaps due to SNOW&rsquo;s lack of a <a href="https://stockanalysis.com/stocks/snow/statistics/">durable competitive advantage</a>, its earnings have been consistently negative. However, analysts expect it could break even within the next 12 months, but then its shares would trade at a high premium, as its forward price-to-sales ratio is 187 times earnings at the time of writing.



<h2>Salesforce (CRM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/10/crm1600-300x169.png" alt="lose up of Salesforce (CRM) logo displayed on one of their towers in downtown San Francisco. Salesforce layoffs"><div>Source: Sundry Photography / Shutterstock.com</div></div>Salesforce (NYSE:<a href="https://investorplace.com/stock-quotes/crm-stock-quote/">CRM</a>) faces concerns about intensifying competition in the cloud computing space.



Competing with major players like Microsoft and AWS requires Salesforce to continuously innovate and enhance its offerings to stay ahead. Unfortunately, considering who it&rsquo;s up against, its top-line is unsustainable.



CRM&rsquo;s revenue growth peaked in 2019 and has gradually found a bottom. This bottom is not expected to be reached until FY2024, and even then that&rsquo;s a <a href="https://stockanalysis.com/stocks/crm/forecast/">speculative guess</a> as it&rsquo;s currently in free fall.



CRM&rsquo;s valuation is also very rich at 65 times earnings. Its balance sheet strength is also dicey with $14.19 billion in cash and $12.59 billion in debt.



There was a time that CRM dominated the cloud computing market in its respective niches. However, I think that those days are long over. It may earn a spot in one&rsquo;s portfolio, but I think its high valuation makes it a prime target for an attack by short sellers, especially if the market goes thru a cyclical downturn.



On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT802110">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT766411">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2024/04/legendary-investor-predicts-forget-a-i-this-technology-is-the-future/?cid=MKT794457&amp;eid=MKT802109">Legendary Investor Predicts: &ldquo;Forget A.I. THIS Technology Is the Future&rdquo;</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
The post <a href="https://investorplace.com/2024/04/stock-market-crash-warning-dont-get-caught-holding-these-3-cloud-computing-stocks/">Stock Market Crash Warning: Don&#8217;t Get Caught Holding These 3 Cloud Computing Stocks</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Salesforce Stock (NYSE:CRM), Short Interest Report

People Also Watch