|Bid||154.70 x 1100|
|Ask||155.17 x 1300|
|Day's Range||153.62 - 156.88|
|52 Week Range||113.60 - 167.56|
|Beta (3Y Monthly)||0.94|
|PE Ratio (TTM)||128.90|
|Earnings Date||Nov 25, 2019 - Nov 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||186.97|
We searched for strong tech companies that also pay a dividend, utilizing our Zacks Stock Screener. These three tech stocks should remain attractive to investors even during a potential market downturn...
Microsoft (MSFT) stock appears to be one of safest mega-cap tech buys out there at the moment, even at its new all-time highs. And it just raised its dividend and announced a new share buyback program.
The parent company of the blogging platform organization plans to expand and accelerate its product roadmap with the funds.
A $35 million gift from Salesforce.com Inc. co-founder and co-CEO Marc Benioff and his wife Lynne targets research in prostate cancer, which killed Marc Benioff's father in 2012. The gift is the latest in a succession of philanthropy from the Benioffs to UCSF, most notably the largest gift behind construction of UCSF Benioff Children's Hospital in Mission Bay and the ongoing work at UCSF Benioff Children's Hospital Oakland. Most recently, the couple gave $35 million last month to UCSF and Stanford University to study the role microbes play in asthma, allergies, multiple sclerosis and other conditions.
Unlike many data and cloud equities, Splunk (NASDAQ:SPLK) stock has struggled in recent weeks. The shares of the developer of Splunk Enterprise, a data analysis solution, have dropped amid worries about its acquisitions and concerns about its cash flow.Source: Michael Vi / Shutterstock.com However, by buying Splunk stock at these levels, traders may get something they do not expect from data and cloud stocks today: a discount.Many of the stocks in those sectors seem to do nothing but move higher. Given the performance of many of Splunk's peers, one might think that all of the stocks in the sector, including SPLK, keep making 52-week highs and have achieved outlandish price-earnings (P/E) ratios.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars However, many data and software-as-a-service (SaaS) firms such as Salesforce (NYSE:CRM) and SAP (NYSE:SAP), have fallen below their 52-week highs. But those companies have not fallen as far as Splunk stock. While CRM stock has dropped by about 9% and SAP has retreated around 15%, SPLK stock has tumbled more than 18% below its 52-week high. Why Splunk Stock fellOne reason for the decline of Splunk stock was concern that its acquisition of SignalFx would dilute the shares. That feeling likely worsened after SPLK announced earlier this month that it would also buy Omnitron. There is some uncertainty as to how these deals will affect the cash, debt, and shares outstanding of SPLK.Moreover, like Autodesk (NASDAQ:ADSK) in recent years, SPLK has begun to switch from a permanent license model to a subscription revenue model. Although the change should result in SPLK generating more revenue over the long-term, such a decision usually leads to a temporary reduction of cash flow.In the wake of fears about its acquisitions, Splunk stock has tumbled from its $143.70 per share high in mid-July to about $116 per share today.However, I see the moves made by SPLK as positive. Many commentators will often criticize firms for putting their short-term profits ahead of their longer-term needs and those of their shareholders. In this case, in an effort to improve its offerings, SPLK has bought other companies. It also switched to a subscription revenue model that should increase its cash flows over the long-term.Still, instead of rewarding the company, traders briefly took SPLK stock into bear-market territory. I believe that the unjustified decline of Splunk stock has created a good buying opportunity. The Case for SPLK StockThe forward P/E ratio of Splunk stock may look high, compared to the S&P 500's average forward P/E ratio. Still, given the high expected growth of Splunk's future earnings, the forward P/E ratio of Splunk stock, which currently stands at 49, looks reasonable. For fiscal 2019, analysts, on average, expect Splunk's earnings to jump 43.6%. In FY20, analysts, on average, predict that its profits will surge nearly 25%.Moreover, yesterday SPLK stock rose by more than 2% after JPMorgan's Mark Murphy upgraded the shares to an "overweight" rating. Thanks to the reduction in the stock price, he sees Splunk stock as attractive. Murphy has placed a $130 price target on SPLK.Like Murphy, I think there are reasons why Splunk's rapid growth should continue. For one, all things cloud are still growing almost exponentially. Moreover, as InvestorPlace columnist Luke Lango noted, "more and more customers are leaving bigger and bigger digital footprints." Consequently, SPLK remains well-positioned to expand its customer base at a rapid pace.Investors should also note that the price-sales ratio of SPLK is 8.6, well below the shares' average P/S multiple of the last five years, which is 11.4. The Bottom Line on Splunk StockThe JPMorgan upgrade highlights the buying opportunity created by the weakness of Splunk stock. Although buying companies and switching to subscription-based plans will hurt SPLK in the short-term, the moves should improve its performance over the longer term.The weakness of SPLK stock gives traders the chance to buy this growth name at a below-average multiple. Investors should take advantage of this opportunity and consider using any additional pullbacks of SPLK stock to buy the shares at an even larger discount,As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Investors Should Exploit the Weakness of Splunk Stock appeared first on InvestorPlace.
The salary totals are yet another example of the bruising battle Bay Area employers face for talented workers, especially in the tech industry.
SAN FRANCISCO, Sept. 18, 2019 /PRNewswire/ -- Salesforce (CRM), the global leader in CRM, today announced Salesforce Sustainability Cloud, a carbon accounting product for businesses to drive climate action that will accelerate the world's efforts towards carbon neutrality. With Salesforce Sustainability Cloud, businesses now have a trusted sustainability platform that gives them a 360-degree view of their environmental impact and provides data-driven insights to make change the planet will notice.
(Bloomberg) -- Adobe Inc. gave a revenue forecast for the current period that fell short of Wall Street estimates, signaling slower sales growth for its newer marketing products.Revenue will be about $2.97 billion in the period ending in November, the San Jose, California-based company said Tuesday in a statement. Analysts projected $3.02 billion, according to data compiled by Bloomberg.Chief Executive Officer Shantanu Narayen has made several acquisitions in the past two years for marketing and e-commerce products to boost revenue, which has climbed at least 20% each quarter since 2015. While the company has put more emphasis on corporate applications to compete with rivals Salesforce.com Inc. and Oracle Corp., it also recently unveiled new augmented reality and 3D-imaging technology to maintain its advantage as the leader in creative software such as its flagship product, Photoshop.Sales from Adobe’s experience cloud division, which includes marketing, analytics and e-commerce tools, are projected to increase 23% in the current period after climbing 34% in the fiscal third quarter. Executives said products gained from its 2018 acquisition of Marketo aren’t growing as fast as anticipated. Adobe plans to invest more money to boost sales in the unit, according to prepared remarks from Chief Financial Officer John Murphy.Murphy said Adobe also has had challenges generating bookings for its Analytics Cloud, which sits atop a new Experience Platform meant to connect clients’ data. The company believes the ongoing global introduction of the software platform will lift revenue, he said.Adobe’s shares declined about 3% in extended trading after closing at $284.69 in New York. The stock has climbed 26% this year after a 29% gain in 2018.Profit, excluding some items, will be $2.25 per share in current quarter, the company said. Analysts estimated $2.30 a share.In the period ended Aug. 30, sales jumped 24% to $2.83 billion from a year earlier. Adjusted profit was $2.05 a share. Analysts projected profit of $1.97 a share on revenue of $2.82 billion.Sales in the creative cloud division, which includes Photoshop, jumped 22% to $1.96 billion in the quarter and are projected to increase 20% in the current period.(Updates with additional details on experience cloud’s slower growth in fifth paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On Tuesday, Benzinga Pro subscribers received an option alerts related to an unusually large Salesforce option trade. At 11:39 a.m. ET, a trader bought 1,000 Salesforce call options with a $170 strike price expiring on June 19, 2020. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader.
Currently, Salesforce (NYSE:CRM) is going from strength to strength in terms of its revenue and operating earnings. Its focus on helping business clients "digitally transform" themselves in all aspects of cloud marketing and analysis is working extremely well. But CRM stock is priced for perfection.Source: Bjorn Bakstad / Shutterstock.com Salesforce has a market value of almost $135 billion. Stripping away all the hype about its sales growth, its actual free cash flow ("FCF") was only $2.06 billion in the last six months ending in July. So its valuation is 33 times annualized FCF.It's also priced at 50 times future earnings per share, another high-flying valuation for CRM stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow to be fair, free cash flow is up 26.5% year-over-year. This is a very respectable growth rate. But it has to continue to accelerate to justify these high valuation metrics.There is another reason why the market keeps CRM stock's valuation so high. SaaS Revenue Gets Valued Higher In Stocks like SalesforceThe market loves subscription revenue companies like CRM. About 94% of CRM's revenue is Subscription-as-a-Service ("SaaS"). * 7 Momentum Stocks to Buy On the Dip These SaaS clients tend to be sticky. It becomes a big hassle for a large company like Adobe (NASDAQ:ADBE) to switch out of Salesforce's marketing system software. When the renewal comes around for the software contract, the decision is usually "stay."In fact, analysts and CRM itself use a special metric to measure this "stickiness." Remaining Performance Obligation (RPO) Is Key for CRM StockAnalysts use a non-GAAP accounting measure called "Remaining Performance Obligation" ("RPO") to measure future sales growth. This includes unbilled and non-accrued deferred revenue which will be billed within the next 12 months. CRM calls this "current RPO."This metric also includes as unbilled, non-accrued deferred revenue ("non-current RPO") which won't be billed within 12 months. This is effectively the remainder of the signed life of subscription contracts. This non-current RPO is a measure of how many years of built-in revenue (upon renewal) can be expected and later billed. The total of current and non-current RPO equals total RPO.Here's what analysts love about Salesforce: its total RPO grew by 20% to $25.7 billion by the end of the second quarter (July). CRM stock can count on $25 billion in future revenue if it does not bring in any new SaaS clients.In fact, CRM's current RPO -- i.e. the dollar amount of sales that can be expected over the next 12 months -- is now $12.1 billion. Keep in mind that in Q2 CRM had $4 billion in sales, or $16 billion annualized. So three-fourths of the next fiscal years' sales are already "in the bag" as current RPO.Salesforce "bakes in" its growth with sticky subscription revenue. So growth is almost unavoidable. CRM has to bring in only one-quarter of last year's new client base. That would match the previous year's growth rate in sales.That's why the market is willing to place such a high valuation on the Salesforce stock. So why am I recommending not buying CRM stock right now? The Market Has a Love-Hate Relationship with CRM StockThe truth is that analysts hate high-flying names like Salesforce stock at market lows. For example, in 2018 CRM rose 55.5% at the peak of the "love" cycle. But by the end of the year, it was up only 31.7% for the year.This same love-hate thing happened this summer. CRM stock fell from its high of $167.56 to a summer hate-low of $139 and change.The market gets nervous about overpaying for the company's expected growth. You can see this in a CNBC roundtable where analysts were negative at the end of last year on the stock right at its bottom. Guidance for CRM Stock Is Attractive, But Be Wary of the Valuation Salesforce provided guidance for its Q3 and full fiscal year on page 5 of its Q2 earnings presentation. CRM forecasted revenue growth of 26 to 27% and current RPO growth of 24-25%.The problem is these numbers do not show growth that is accelerating. But CRM stock's high-flying valuation assumes incrementally higher growth rates.Therefore I suspect CRM stock is vulnerable to any downdraft in the general market. This is especially so if there is a possibility of a slow-down in corporate profits growth.In summary, pick your spot with CRM stock. You can buy it at a cheaper price sometime in the future. The market is valuing the expected growth at a high price right now.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks and was launched on August 30. Subscribers during September receive a 20% discount, plus a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Wait for High-Flying Cloud-Based Salesforce Stock to Fall appeared first on InvestorPlace.
Even the best software stocks can get beat up as bearish investors pounce on stock market volatility. High-revenue-growth companies specializing in software-as-a-service may outperform.
SAN FRANCISCO, Sept. 16, 2019 /PRNewswire/ -- Salesforce (CRM), the global leader in CRM, today announced Consumer Goods Cloud, a new industry product that enables consumer goods companies to drive revenue growth and maximize ROI through improved retail execution capabilities. Retail execution—the act of getting the right products to the right stores at the right times—is vital to the success of consumer goods companies, as 95% of fast moving consumer goods products are sold in physical stores1. Consumer Goods Cloud enables reps to use AI to optimize key tasks, drive higher revenues through better promotion execution and order management and elevate the in-store experience for the end consumer.
SAN FRANCISCO, Sept. 16, 2019 /PRNewswire/ -- Salesforce (CRM), the global leader in CRM, today announced Manufacturing Cloud, a new industry-specific product for manufacturers. Manufacturing Cloud brings sales and operations teams together around a unified view of market and customer demands to more accurately forecast, plan and drive predictable business performance. With Manufacturing Cloud, companies can now better meet commitments and run a more streamlined business while improving customer satisfaction.
Chairman of the Board & co-CEO of Salesforce.com Inc (30-Year Financial, Insider Trades) Marc Benioff (insider trades) sold 10,000 shares of CRM on 09/12/2019 at an average price of $154.21 a share. Continue reading...
“It was a game-changing acquisition for Adobe. It really put more fuel in the tank from a growth and product perspective,” an analyst tells the Business Journal.
Nineteen chief executive officers of S&P 500 companies so far have given their own money to 2020 Democratic White House hopefuls.
It's been an eventful week for tech stocks, and the software sector in particular has made headlines. So far, we've seen one of the biggest short-term moves out of momentum and growth shares and into value names since at least 2011. Stocks like Alteryx (NYSE:AYX) -- the cream of the crop for software as a service names -- are down 20% in a few days. Meanwhile, left for dead companies in the old economy, like retail and energy firms, are suddenly surging.Source: Bjorn Bakstad / Shutterstock.com So far, Salesforce (NYSE:CRM) has largely avoided getting mauled along with its sector. Salesforce's stock price is only down about 8% from its 52-week high, which isn't bad at all given the carnage in many of the other software names. But will CRM stock continue to hold its ground in the coming days and weeks? Can Salesforce Stock Support its Valuation?Over the past few years, it hasn't been difficult to own software companies. If they are growing nicely and generate decent free cash flow, you can generally hold the stock and the share price will rise over time. Sure, there have been bumps along the way, but generally, any dip has been a great buying opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe may be entering a new paradigm, however. The drop in software stocks over the past week is one of the worst in years and it comes in isolation. Broader tech stocks including the FAANGs -- Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), and Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google -- aren't seeing similar declines. Even though Alphabet is under fire from 50 state attorneys general, has avoided a significant selloff. Yet SaaS stocks are getting annihilated. * 10 Battered Tech Stocks to Buy Now This leads us to ask if Salesforce stock will fall victim to this trend as well. CRM stock is currently trading for 129 times trailing earnings and 50 times forward earnings. That's extremely expensive by any measure. With the company's 22% growth rate, that makes for a PEG ratio well above 2, which many analysts hold as the cutoff for a fast-growing tech company.Of course, more than a few SaaS companies don't make accounting profits at all, so Salesforce at least has some real earnings to fall back on. On a price/sales basis, CRM stock is selling for 9x at the moment. That's expensive, but it's under the 10x threshold that makes a tech company nosebleed expensive. The 41x price-to-free cash flow metric is also steep, however, particularly given that cash flow growth underwhelmed last quarter.CRM stock would have to drop a lot in price to become a reasonable buy on a valuation basis. Has Salesforce's Investment Profile Changed?Within the SaaS space, CRM stock was as close to a buy-and-hold-forever pick as you could get. Salesforce has incredible market share in its core CRM business. Once it signs on a customer, it almost never loses them. The time and cost to switch to a different service provider is simply too great. As a result, Salesforce has been able to spend heavily on customer acquisition knowing that most of its new clients will stay on for many years, or decades, producing high-margin predictable cash flows.As such, you could easily model Salesforce's value by looking at how fast revenues were growing and watching their margins. It was a fairly easy business to predict so investors got comfortable holding it for the long run.This may be changing, however. Salesforce has now started to acquire other software companies left and right as it broadens its product offerings. That's not necessarily a bad thing by any means. But it adds more risk to the profile, as Salesforce could see some of its investments in less core offerings falter and ding the overall valuation.These aren't small plays either. Salesforce has purchased MuleSoft for $6.5 billion, ClickSoftware recently for more than $1.3 billion, and -- most importantly -- Tableau for more than $15 billion. As Salesforce has issued a lot of stock for these deals, it risks significant dilution if these don't fit in with the core CRM business as much as management hopes. These buys could end up looking great. In the short run, however, with investors questioning software stock valuations, CRM stock looks riskier as investors wait and see if all this mergers and acquisition activity ends up succeeding or not. My Verdict on CRM StockI just don't see the case for getting involved in CRM stock, yet. It seems there are two ways that things could shake out in the short run. The sector could continue to slide, dragging down Salesforce's stock price with it. Or the SaaS stocks could stabilize, offering much bigger short-term gains for its peers that have fallen 15%-25% in recent days. If you want to buy the dip, there are more attractive names right now than CRM stock.With Zscaler (NASDAQ:ZS) down 20% following its earnings report earlier this week, that's another red flag coming out of the SaaS sector. Salesforce, as one of the longest running SaaS companies, has developed a sterling reputation within the industry. But who knows if that will be tarnished as it integrates all these acquisitions. If Salesforce shows any weakness in its numbers, CRM stock could easily trade down 20% in coming weeks like so many of its peers.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Salesforce Stock Is at Risk as Other Software Stocks Tank appeared first on InvestorPlace.
SAN FRANCISCO, Sept. 12, 2019 /PRNewswire/ -- Salesforce [NYSE: CRM], the global leader in CRM, today announced $18.2 million in grants to the San Francisco and Oakland school districts and education nonprofits to expand educational opportunities for students and leaders in the Bay Area. The grants include $8.5 million to San Francisco Unified School District (SFUSD), $8.7 million to Oakland Unified School District (OUSD), and $500,000 each to nonprofits CORE and Blueprint Schools Network for continued education support.
(Bloomberg) -- Germany will finally get another major listed tech company when software maker TeamViewer AG completes a 2.3 billion-euro ($2.5 billion) initial public offering this month -- the biggest in the industry in almost two decades.While Germany has several established tech companies, including software giant SAP SE, there have been few sizable newcomers since chipmaker Infineon Technologies AG listed in 2000. TeamViewer will provide a boost to the weakest European IPO market in years and comes as Germany’s economy teeters on the brink of a recession. The share sale, which is oversubscribed, will be the country’s largest so far this year.Founded in 2005, TeamViewer has developed from a local provider of remote computer access tools to one that offers connectivity to customers in about 180 countries. The company plans to further expand in Europe, Asia and the U.S., and will add to its offerings for large corporate customers to help them connect anything from mobile phones and tablets to machine sensors, smart farming equipment or wind turbines.With a sudden influx of new offerings in Europe, IPO investors have a lot to choose from. Apart from TeamViewer, private equity firm EQT Partners AB is also marketing its initial public offering, with a management roadshow kicking off next week. On Thursday, Helios Towers Plc -- one of sub-Saharan Africa’s largest mobile-phone tower operators -- announced plans to list on the London Stock Exchange.TeamViewer’s owner, private equity firm Permira, plans to sell as many as 84 million shares for 23.50 euros to 27.50 euros each via holding firm TigerLuxOne, the company said late Wednesday. TeamViewer stock is expected to start trading on the Frankfurt Stock Exchange on Sept. 25.The price range would give the company a market value of between 4.7 billion euros and 5.5 billion euros. Bloomberg News previously reported the valuation could be 4 billion euros to 5 billion euros. The listing will improve TeamViewer’s brand recognition and make it easier for it to grow organically and via “selected acquisitions,” spokeswoman Martina Dier said.TeamViewer may hire more people in the U.S. and opened offices in China, Japan, India and Singapore last year to expand sales in those markets. In China alone, TeamViewer has “tens of millions” of free users, more of whom the company wants to convert into paying customers, according to Chief Executive Officer Oliver Steil.“Our big growth combined with strong profitability -- even if market conditions have been difficult -- makes our financial profile attractive to investors,” Steil said in an interview last month.TeamViewer’s cash billings grew more than 35% in the first half, faster than last year’s 25% growth, to over 140 million euros, the CEO said. The company posted a cash operating profit margin of more than 50% during the period. It says its software has been installed on more than 2 billion devices.Permira bought the company for 870 million euros in 2014. It has since partnered with firms including Alibaba Group Holding Ltd. and Salesforce.com Inc. to bolster its cloud offerings.The free float, a measure of company stock available to trade, will be 30% to 42%, depending on the size of the IPO, according to the statement.Goldman Sachs Group Inc. and Morgan Stanley are arranging the IPO, with Bank of America Corp., Barclays Plc and RBC Capital Markets. Lilja & Co. is acting as an independent adviser to Permira and TeamViewer.(Updates with company comment in sixth paragraph. An earlier version of the story was corrected to remove reference to IPO proceeeds)To contact the reporter on this story: Stefan Nicola in Berlin at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Andrew Blackman, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
One of Boston’s largest private equity firms is leading an investment in an international tech company planning to more than double its presence in Massachusetts.
Salesforce Chief Philanthropy Officer, Ebony Beckwith joins Yahoo Finance's Julie Hyman, Adam Shapiro and Dan Roberts as well as Adam Johnson, publisher of Bullseye Brief to discuss the latest investment the company has made in Bay Area schools.