S&P DOWNGRADES OPINION ON SHARES OF SALESFORCE.COM TO STRONG SELL FROM HOLD
(Standard & Poor's) After considerable M&A activity centered on cloud computing, we think CRM will face greater competitive challenges. Additionally, CRM trades at nearly a 20% premium to peers based upon our EV/S analysis, which we think reflects relatively high peer valuations in light of the aforementioned M&A actions as well as related speculation. We are lowering our 12-mo target price to $120 from $135 to better account for these factors. We note that the shares have risen nearly 30% year to date and we see decelerating revenue growth. CRM is set to report Jan-Q results next week on Feb 23.
Bullish already priced in, the big boys are going to run with this stock. The whole market is being propped up with a roll of duct tape and a deck of cards. Look at TVIX and make your decision, all the BS coming out of the EU, TVIX will be way more profitable than this piece of crap.
There has been exaggerated bullishness in CLL over the past few weeks. Exaggerated bullish action on Wednesday is likely to be concentrated on other stocks, especially if one or more of the stocks that will report on Wednesday provides a much better report "than expected." Also, there are several economic points to be reported early tomorrow and any of them could be used as excuses to buy or sell economically sensitive stocks.
Though this report may not convince people to sell CRM, the existence of the published negative publicity may bring out some orderly selling.
I got the downgrade story at 3:17 eastern time on a reuters feed, can't supply link but there should have been atleast 4 stories about in on cnbc and under headlines on the yahoo quote page forcrm, oh sorry I forgot they only do that when they are driving up the price.The downgrade was real and it came out at 3:17 eastern time .