Actually, CRM has risen rather consistently in a fairly straight line except during market crashes. The momo crowd is elsewhere.
The Fed does not buy stocks but all that bond buying depresses interest rates to ridiculous low levels. You have to take risks to get any positive return, after inflation. Stocks are the best game in town for most of us, though real estate is attracting investors too.
It is because Bernanke is printing dineros by the trillion. But on Mondays, due to hangovers, nobody can believe it really is happening; it might be a leftover drunken dream. So action is stalled until Tuesday.
hilarious to see all the amateurs who think they are smarter than the pros, and make illogical arguments with lots of emotional hot-button words, and claim conspiracy and manipulation. Read Peter Lynch to understand why this steadily-growing leader has a steadily-increasing stock price.
well, there's the typical level of "analysis" from the shorts. Confusing "actual" earnings with GAAP earnings. Insulting MB's physical appearance and weight. Citing conspiracies among the brokers to raise prices. Increased expenses - ok, factual & relevant - but data centers are capex that any competitor also has to buy - but with far less economy of scale. The expenses problem is really about overpaying salespeople and lack of fiscal discipline.
It used to be "a $3 billion revenue run rate". Now it is "a $10 billion revenue run rate" as mentioned by Keith Weiss of Morgan Stanley. So much for the law of large numbers.
Morgan Stanley's Keith Weiss:
"We like the strategy of consolidating the marketing automation space given: 1) its high degree of fragmentation relative to other application areas, 2) customers’ increasing desire for fewer integration points and broader platform functionality and 3) the increasing amount of technology-oriented spend that industry analysts expect to shift towards the marketing organization over the next several years. Salesforce is in a unique position to benefit from this consolidation given its strength in sales and service, areas that customers are increasingly tying directly into their marketing programs and stands to boost its value proposition with a broader marketing offering.
He also urges investors not to worry overly much about profit margin impairment from such acquisitions, arguing that Salesforce can “absorb” added costs:
"Since Salesforce’s 4Q earnings report, a key investor debate has emerged around the impact of potential acquisitions given: 1) the company’s commentary on its earnings call, 2) capital it recently raised in a $1B+ convertible offering and 3) other cloud-oriented acquisition activity we have seen by various competitors like Oracle (ORCL). Acquisitions have been one key aspect to Salesforce furthering its strategic value to customers over the past few years and we certainly expect similar types of activity going forward as it continues to broaden its portfolio and target a $10B revenue run-rate. However, given a large, growing and highly profitable renewal base and improving productivity, we expect transactions to be less dilutive over time. Our work suggests that Salesforce, hypothetically, could absorb up to $50M of M&A related operating losses in FY14 after accounting for synergies and still maintain overall operating margins at last year’s levels. ....
Surprising that it is here already. I will write calls because 1) I am long-term-long and there is no catalyst for fresh highs and 2) shorters are always interested in CRM, and they probably will go shorter as it rises. (Unless they are broke or tired of losing.) Back to "hold". As ever, buy on dips IMO.
We're talking SaaS here! Can't beat it with a stick!
Those VIA customers were mentioned in the conference call, so that's public knowledge.
Disclosure: I am overweight long in IL.
Speculation: a major company could sell tons more of VIA than the current outfit could sell. So, good takeover target.
I do not know why the split was done. They always seem illogical to me unless there is a dividend, in which case, you could just double the dividend instead of a 2-1 split.
No question, dollar volume on CRM is down since the split. I wonder if some of the momo crowd prefers "high" share prices? I expect sideways action until earnings.
this outperformed the broad market today but still, I agree, action here is tired. AAPL looks cheaper than this while GOOG and BIDU look hotter than this, so who is the buyer? The business has to catch up with the price. It would help to cut the crazy growth of SG&A - I'm talking to YOU, Mr B!!
Stockholders here should do their DD and already know that :
-- the founders have sold shares, year in and year out, for many many years
-- this company has printed stock to do acquisitions and pay workers, which has diluted the shares around 5-6% per year, for many many years
-- despite those things, the stock has soared along with revenues and cash flow.
And: Yes, "rigor". For instance, the "corporate governess"? Is that Mary Poppins?
Looking again; still up strongly; as it was when you posted. Why on earth would CRM correlate with LULU?? I thought you shorts agreed that CRM is no longer a favorite of the momo crowd.
my explanation is that 1) when you call me personally a moron, it simply makes you a moron, and, 2) if SFDC really never had any earnings, it wouldn't have all that free cash flow, all those assets, and all those growing product lines; to maintain otherwise is idiocy, IMO, and, 3) the posts of most of the shorts here, not meaning you, clearly show a lack of intellectual rigor. (OK, some of the longs too.) Sorry if you feel insulted by my attitude toward your belief in profitlessness. Would you feel better if I call it "nonsense" and revoke "idiocy" ? Probably not.