the long sideways channel 50-59 means folks and PCs will take profits here. (I've sold 20% of my trading shares for decent profits, the rest stay until 65+.)
Resistance, plus light summer trading volume, plus easing geo tensions, makes sideways seem most likely path short-term for CRM price, probably in lockstep with the S&P 500. But when the levee breaks, the next resistance is 67. Quarter after quarter of "incredible" and "awesome" growth will make believers of the skeptical. (yes, you!)
IMO, that is illogical on this point: easy money inflates all assets, not just specific aseet classes. The assets that are chosen for purchase reflect mostly the same factors with or without QE. In fact, a "borrow-and-buy" strategy usually buys the safest asset classes, not growtth stocks, so that the debtor is not whipsawed once the easy-money trend ends.
I see a gap in the chart: down from 67 - it will be filled soon IMO.
Sentiment will turn positive on this soon due to these changes:
multiple #1 products instead of just 1;
breakout of ExactTarget shows successful acquisition strategy;
new features will give even bigger lead in features/capabilities;
successful private placement showed that big money still loves CRM;
another major product was pre-announced at the CC.
Intristin. CRM does have profits, GAAP just conceals them, and they are all reinvested in growing the business.
For the past two years FB revenue growth is about equal to CRM.
FB is a one-trick pony. So is AAPL which makes most profit from iPhone, and Google which makes almost all profit from search ads. I own all four.
IMO FB is done growing, it will never double revenues from here. CRM has barely started growing, it is accelerating: In 2012, 1 #1 app with Sales; 2013, 2 #1 apps with Service ; 2014, 3 #1 apps with Marketing ; next, the #1 Analytics app; and the #1 cloud platform. Can't touch this.
Put the CC on speakers. Drink a shot each time MB says "incredible" or "awesome", except, no drinking for 2 minutes anytime he says "profit" or "margin". (Not a big problem.)
If you can walk away, you're a bigger drinker than me!
-- Fastest growth ever for an IT company of this size
-- Qtr Revs growth ACCELERATED AGAIN, now 38% y/y
-- ExactTarget acquisition paying off big-time (remember when all the bashers were criticizing this?)
-- Free cash flow over $230 million for the qtr (remember when all the bashers were saying they are out of cash?)
-- 400 million of stock sold in private placement (remember when all the bashers were saying nobody wants the stock anymore?)
-- $7.4 billion of booked business (backlog) !
-- Clearly will reach $10 billion revs/yr
That is a GREAT video with two very bright guys - one bullish, one skeptical. TYVM
As AAPL and FB digest recent gains and AAPL's alltime high, traders are looking to the company with superior long-term growth prospects and another perfect quarter of revenue acceleration, where revenues have grown 20% since it first reached current price levels. They already pushed it up 2.7% (57.20) pre-market. Combined with high levels of shorts, people and algorithms soon will conclude that CRM will test the high of its channel (59) and then maybe the previous high (67). Early-day 7% spike up is likely - if so, I will sell into the squeeze and look to re-buy.
sure, fastest growing IT company EVER
agreed on most points. Margins ought to improve when growth slows. But in fact, revenue growth (and earnings improvements) are accelerating.
Many strategies which are generally sound and correct, e.g. buying low P/E stocks, have been total failures for CRM investing. Most people on this board have that problem, and compound it by asking "When will I be right?" instead of "What can I learn from the failure of that strategy?". I have decided to call this "Schiller Syndrome".
the usual childish BS and insults and lies and slurs and defamation and slander from you. This is the last time I will say it because it is the last time I see it. You are ignored.
Zacks uses formulas that reflect changes in value. When stock price increases, like the recent 20% rise, ranking drops (it goes to a higher number, meaning, less attractive) . I am happy with the quarterly results, and I tripled my long position today on the 5% pullback.
Form D says it is for acquisition. I thought we had a moratorium on those. IMO better to do them by dilution instead of paying cash, because the price of acquisition for tax purposes will likely go up with the share price, so, net net, less income tax to pay. Of course, if the price trends down, that won't happen.
The big issue is whether the acquisition will pay off in the long-run. Even a company with a billion in FCF cannot spend 400 million on a whim. Impossible to prove whether the past acquisitions were good moves.