CRM - salesforce.com, inc.

NYSE - NYSE Delayed Price. Currency in USD
155.99
+0.65 (+0.42%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close155.34
Open154.90
Bid155.50 x 1100
Ask156.02 x 900
Day's Range153.17 - 156.21
52 Week Range113.60 - 166.99
Volume4,200,422
Avg. Volume5,277,274
Market Cap120.873B
Beta (3Y Monthly)1.05
PE Ratio (TTM)109.08
EPS (TTM)1.43
Earnings DateMay 28, 2019 - Jun 3, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est181.63
Trade prices are not sourced from all markets
  • Charlotte-based MapAnything to be acquired by San Francisco tech giant
    American City Business Journals3 days ago

    Charlotte-based MapAnything to be acquired by San Francisco tech giant

    MapAnything Inc., a location-of-things software provider based in Charlotte, announced it will be acquired by San Francisco-based Salesforce.com Inc.

  • The Zoom IPO Goes Boom
    InvestorPlace3 days ago

    The Zoom IPO Goes Boom

    I've met with Zoom Video Communications' (NASDAQ:ZM) CEO and founder Eric Yuan several times. He's soft spoken and humble. He also has a laser focus on his customers (keep in mind that the company's Net Promoter Score (NPS) is over 70, which is exceptional).Source: Shutterstock No doubt, Yuan's efforts have paid off in a big way. Today the company launched its IPO and yes, it's a mega offering. The ZOOM IPO priced 20.9 million shares at $36, which was after there were two increases in the range. In the deal, Salesforce.com (NYSE:CRM) agreed to invest $100 million. ZOOM also has some other notable strategic investors like Atlassian (NASDAQ:TEAM) and Dropbox (NASDAQ:DBX).The valuation? Well, the ZOOM IPO is now at $15.8 billion, with the stock up 75% on its opening. By comparison, the valuation was $1 billion in early 2017.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe ZOOM IPO comes on a day when Pinterest (NYSE:PINS) pulled off its own offering. That company priced 75 million shares at $19 and so far in today's trading, the stock is up 22%.And it's a good bet we'll see more new IPOs come to market in the coming months, such as Uber, Slack and Palantir. Background on the ZOOM IPOAs a college student in China during the 1980s, Yuan wanted to use technology to communicate with his girlfriend (by the way, she is now his wife!) This is why he was so attracted to WebEx, which he jointed as a founding engineer in 1997. He got a quick education on what it's like to be a part of a hyper growth company. * 5 Dividend Stocks Perfect for Retirees But when Cisco (NASDAQ:CSCO) acquired WebEx, things changed -- and not for the better. Yuan provided many ideas to improve the product but there was tepid interest. So in 2011, he left to start Zoom.His obsession was with creating the best product possible. As a result, there was little energy devoted to marketing. In fact, it was not until a few years ago that Zoom put together a marketing team.As of now, Zoom is a full-on platform that allows for rich video, voice, chat and content sharing. It is a native cloud system -- that involves a custom multimedia router -- which has demonstrated much better performance than legacy applications. The goal: to make Zoom meetings better than in-person meetings.Now, a key to the success of Zoom is that it is inherently viral. According to the S-1: "Our rapid adoption is driven by a virtuous cycle of positive user experiences. Individuals typically begin using our platform when a colleague or associate invites them to a Zoom meeting. When attendees experience our platform and realize the benefits, they often become paying customers to unlock additional functionality."This has translated into strong financials. From fiscal 2017 to 2019, revenues soared from $60.8 million to $330.5 million. Oh, and ZOOM is profitable. Last year, the net income came to $7.6 million and cash flow from operations was a hefty $51.3 million.The market opportunity is also enormous. Based on research from IDC, the spending on ZOOM's main categories are forecasted to reach $43.1 billion by 2022. Bottom Line on the ZOOM IPOWhile Zoom is a great company and is likely to see continued robust growth, the valuation remains at nosebleed levels. Consider that the price-to-sales multiple is around 47X. Actually, this is at levels for red-hot cannabis stocks!OK then, so what now for the ZOOM IPO? It's really tough to tell. However, it seems clear that the stock is priced for perfection. And yes, this can set investors up for disappointment. Just look at what happened with the Snap (NYSE:SNAP) IPO.In other words, when looking at ZOOM right now, it's best to be cautious.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post The Zoom IPO Goes Boom appeared first on InvestorPlace.

  • Business-to-Business Services Are Finally Entering the 21st Century
    Motley Fool3 days ago

    Business-to-Business Services Are Finally Entering the 21st Century

    Software service companies are helping the dinosaurs thrive in the digital era.

  • Salesforce is buying MapAnything, a startup that raised over $84 million
    TechCrunch3 days ago

    Salesforce is buying MapAnything, a startup that raised over $84 million

    This time it's MapAnything, which as the name implies, helps companies build location-based workflows, something that could come in handy for sales or service calls. The companies did not reveal the selling price, and Salesforce didn't have anything to add beyond a brief press release announcing the deal. "The addition of MapAnything to Salesforce will help the world's leading brands accurately plan: how many people they need, where to put them, how to make them as productive as possible, how to track what’s being done in real time and what they can learn to improve going forward," Salesforce wrote in the statement announcing the deal.

  • Audi Germany and Salesforce Activate the Future of Automotive with Digital Offerings
    PR Newswire3 days ago

    Audi Germany and Salesforce Activate the Future of Automotive with Digital Offerings

    MUNICH, April 17, 2019 /PRNewswire/ -- Audi Germany, a leading manufacturer of automobiles and motorcycles in the premium segment, is pooling its expertise in the area of e-mobility with Salesforce (CRM), the global leader in CRM, to deliver smart, personalized customer engagement throughout the entire customer lifecycle. Audi's new innovative "Functions-on-Demand" solution enables customers to order and obtain—temporarily or permanently—optional equipment and services for their vehicles. The Audi e-tron and Functions-on-Demand solution can be experienced at the Salesforce Basecamp events in Munich, Düsseldorf and Berlin.

  • Zoom Video Raises Range on IPO Ahead of Thursday Launch
    Motley Fool4 days ago

    Zoom Video Raises Range on IPO Ahead of Thursday Launch

    This under-the-radar tech unicorn has one unusual advantage compared to most of the companies to go public recently.

  • IBM Needs to Show Us It Can Succeed Before It’s a Buy Again
    InvestorPlace4 days ago

    IBM Needs to Show Us It Can Succeed Before It’s a Buy Again

    I'm not yet a believer in the ability of IBM (NYSE:IBM) to make the shift to the new tech world under its current leadership. Every other mega-cap technology company has already adapted to the new ways except IBM. While IBM stock came into its earnings event up 27% year-to-date compared to the S&P 500's 16%, it still trails the index and its competitors tremendously for the long term.Source: Shutterstock IBM is down 25% in five years, while the SPY is up 56%. Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM) are up 200% for the same period. More to that, Cisco (NASDAQ:CSCO) and Oracle (NYSE:ORCL) are up 145% and 38% respectively. So this is proof that old dogs can learn new tricks … except for IBM.Management talks the talk, but for some reason, it's hard to see the results without a forensic technician on hand. If CEO Ginni Rometti has to point out the innovation, then it's probably not as impressive as she thinks it is.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe new formula for tech success is simple. Companies now want to use subscription services that are based in the cloud. Anything else is considered ancient and is off trend. This is likely to continue for a few years. CRM started the model and Amazon (NASDAQ:AMZN) accelerated it with the advent of its AWS.Last night, IBM management missed on sales but managed to beat their bottom line. This means IBM is managing profitability, but it still struggles to meet its revenue expectations. Also, to make things even more confusing they rearranged some of the revenue segments to muddle things. So I caution you on chasing mentions of "cloud" in their statements -- now, it's a matter of showing, not just telling. * 7 Consumer Stocks to Buy and Hold for Years While I'm not an expert on IBM's business, I do know mediocrity when I see it. This report represents its third consecutive decline in quarter sales year-over-year. Clearly IBM needs to make another shift of sorts. Whatever the company is doing now is not working, yet the CEO still gets the benefit of the doubt. At some point, IBM needs intervention so it can transform itself as MSFT did with its new CEO Satya Nadella.My criticism here is not the same as shorting the stock, but it's not a good bullish thesis either. The good news is that fundamentally, IBM stock is cheap as it sells at a price-to-earnings ratio of 12. This is even cheaper than Apple (NASDAQ:AAPL), so there is value below and it's not likely to be a major loss to hold the shares here. It's just stagnating. Bottom Line on IBM StockMaybe its acquisition of Red Hat (NYSE:RHT) is their ticket out of the stock muck in which they are stuck. If so, then a lot is riding on that and if it fails for any reason, both of those stocks are doomed.In addition to its fundamentals, IBM stock can't rally here because it's facing heavy technical resistance. Yes, IBM rallied an amazing 34% off its December lows. But up here it runs into the supply of sellers who have been stuck up since the October disaster. * 10 Best Stocks to Buy and Hold Forever Pivot zones like these are where bulls and bears agree on price so they like to fight it out hard. This creates price action congestion and when a stock is rallying this translates into resistance. All of that means it won't be as easy for IBM stock to breach the $145 zone as it was getting here. Conversely, IBM stock has support above $132 per share, so it would take a big calamity in the equity markets for it to fall below it.If I owned shares, I'd put them to work by selling covered calls against them. This is an easy way to create synthetic dividends above and beyond the company's 4% yield.Another bit of potentially good news is that most analysts have given up on the rally in IBM, so they rate the stock as a HOLD. When IBM finally delivers actual turnaround results there should be a slew of upgrades to cause a buying catalyst for the stock.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post IBM Needs to Show Us It Can Succeed Before It's a Buy Again appeared first on InvestorPlace.

  • Salesforce.com Is Bigger Than Benioff
    InvestorPlace4 days ago

    Salesforce.com Is Bigger Than Benioff

    Since its founding 20 years ago, Salesforce.com (NYSE:CRM) has been defined by the brash personality of CEO Marc Benioff.Source: Shutterstock Now, like many of his Silicon Valley peers, Benioff is trying to pass the torch, naming Keith Block co-CEO, plying him with gifts and elevating his status so that Benioff can be a philanthropist and public figure.It's the right time to do it, with Salesforce coming off a record year. For fiscal 2019, it reported net income of $1.11 billion, $1.43 per share, on revenue of nearly $13.3 billion. The forecast is for this to continue, with fiscal 2020 non-GAAP earnings estimated at about $2.75 per share, on revenue of about $16 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf Salesforce can hit these marks, its market cap of about $121 billion will look reasonable, and the April 16 opening price of almost $161 per share will look cheap. Growing Salesforce CloudSalesforce pioneered the business of Software as a Service (SaaS), delivered using clouds, with Benioff spending much of the current decade freeing his customers from dependence on Amazon.Com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), all of which are now "partners." * 10 S&P 500 Stocks to Weather the Earnings Storm The result is that cloud-based SaaS companies like Salesforce are in a "sweet spot," with Salesforce commanding 20% of the Customer Relationship Management market. Its most recent success is Einstein, introduced in 2016, an analytics program that can predict consumer behavior based on enterprise data stores.Salesforce is also introducing Quip, a collaboration tool bought in 2016, to its platform, and this is where things get cloudy, because many of the companies Salesforce collaborates with, including the Cloud Czars, already offer similar functions. Clouds Around CRM Stock's BusinessThe sky around Salesforce is getting cloudy, as Adobe (NASDAQ:ADBE) has made its graphics software a marketing tool, and teamed up with Microsoft to take on Salesforce's CRM niche.This jockeying for position also takes place on lower cloud levels. When Solarwinds (NYSE:SWI) bought Samanage, a Salesforce investment, it moved toward becoming a competitor to ServiceNow (NYSE:NOW), and may have pushed that company into the arms of the Adobe-Microsoft alliance.The growing complexity of Artificial Intelligence is also pushing Salesforce into a global position, as it recently opened a lab in Singapore. Salesforce, now based in a landmark San Francisco skyscraper, is also planning other skyscrapers in cities like Boston, physical manifestations of virtual dominance.The danger for investors is this can make Salesforce a target. It's now facing a lawsuit over sex trafficking, as women say its software was used by the company that helped traffic them, and customized for the task. The man behind the website has pleaded guilty and offered to testify against his business partners.The purchase of Salesforce.org, a charitable foundation that sold its software at a discount to charities, for $300 million may distract from those headlines, as Benioff continues to make himself over as a great man, buying Time Magazine and pushing his fellow billionaires to support the homeless. The Bottom LineWith Benioff increasingly distracted, and Salesforce increasingly scaled, co-CEO Block is stepping up as the public face of the company, which may be behind the gifts of a fancy car and expensive watch.Block, who joined in 2013, is now the go-to guy to talk about the company's technology initiatives, as it cements itself as an institution beneath the clouds that serve its software.Investors who came along for the ride with Benioff have reaped huge gains. New investors are betting on Block.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Salesforce.com Is Bigger Than Benioff appeared first on InvestorPlace.

  • Salesforce Introduces New Einstein Services, Empowering Every Admin and Developer to Build Custom AI for Their Business
    PR Newswire4 days ago

    Salesforce Introduces New Einstein Services, Empowering Every Admin and Developer to Build Custom AI for Their Business

    SAN FRANCISCO, April 17, 2019 /PRNewswire/ -- Salesforce (CRM), the global leader in CRM, today announced new Einstein services that enable admins and developers to build custom artificial intelligence — all with just a few clicks or a single line of code. More than six billion predictions are generated every day by Einstein AI capabilities embedded across Salesforce, putting the power of machine learning at the fingertips of millions of sales, service, marketing and commerce professionals. With a global shortage of data scientists necessary to build these tailored AI solutions, Salesforce has been bridging the skills gap by empowering Salesforce developers and admins with "point and click" solutions and low-code services in the Einstein platform.

  • Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
    Zacks4 days ago

    Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know

    Salesforce.com (CRM) closed at $158.69 in the latest trading session, marking a -0.87% move from the prior day.

  • Software Stocks To Buy And Watch; Valuations Of SaaS Companies Soar
    Investor's Business Daily5 days ago

    Software Stocks To Buy And Watch; Valuations Of SaaS Companies Soar

    Software stocks jumped in the first quarter of 2019, repeating a pattern from the prior two years. The big question is whether premium valuations can be sustained amid worries over growth.

  • Why it just might make sense that Salesforce.com is buying Salesforce.org
    TechCrunch5 days ago

    Why it just might make sense that Salesforce.com is buying Salesforce.org

    Yesterday, Salesforce .com announced its intent to buy its own educational/non-profit arm, Salesforce.org for $300 million. Salesforce has always made a lot of hay about being a responsible capitalist. While it's easy to be cynical about the possible motivations, it could be a simple business reason, says Ray Wang, founder and principal analyst at Constellation Research.

  • Better Buy: Microsoft vs. Salesforce.com
    Motley Fool5 days ago

    Better Buy: Microsoft vs. Salesforce.com

    Here's a framework to help you decide which of these tech stocks is the best option for you to add to your portfolio now.

  • Salesforce 'acquires' Salesforce.org for $300M in a wider refocus on the nonprofit sector
    TechCrunch5 days ago

    Salesforce 'acquires' Salesforce.org for $300M in a wider refocus on the nonprofit sector

    org -- which had been areseller of Salesforce software and services to the nonprofit sector -- intoSalesforce itself as part of a larger, new nonprofit and education vertical

  • salesforce to Buy Salesforce.org, Updates FY 2020 Guidance
    Zacks5 days ago

    salesforce to Buy Salesforce.org, Updates FY 2020 Guidance

    salesforce (CRM) set to purchase its philanthropic arm, Salesforce.org, for a deal value of $300 million.

  • Barrons.com5 days ago

    A Deal to End the U.S.-China Trade War Could Be Coming. But It Won’t Fix Everything.

    Investors hoping to remove trade from their near-term worries list may be in for disappointment. For one thing, tariffs may not disappear entirely.

  • TheStreet.com5 days ago

    Zoom Video Raises Expected Price Range of IPO

    Zoom Video Communications raised its expected initial public offering pricing Tuesday to $33 to $35 a share, up from an earlier estimate of $28 to $32 a share, according to a filing with the Securities and Exchange Commission. The San Jose-based video conference company said it was offering 9.9 million shares of its Class A common stock while selling shareholders will offering 10.9 million shares of Class A common stock. The IPO would be worth to the company roughly $326 million to $346 million.

  • Salesforce.org Announces Major Education Cloud Updates, Invests $1.75 Million in College-Ready Nonprofit Organizations
    PR Newswire5 days ago

    Salesforce.org Announces Major Education Cloud Updates, Invests $1.75 Million in College-Ready Nonprofit Organizations

    SAN DIEGO, April 16, 2019 /PRNewswire/ -- Salesforce.org, which empowers nonprofits and educational institutions through technology, grants, and volunteering programs, today announced a new data architecture to support lifelong learning, new capabilities for its Education Cloud, and investments in nonprofit organizations committed to college and career success for students from all backgrounds. Higher education is facing new challenges as expectations from prospective and current students, alumni and donors are changing. Salesforce.org provides innovative tools that enable institutions to deliver tailored student journeys and achieve greater student success—from recruiting and admissions all the way through career readiness.

  • Salesforce.com buys Salesforce.org, and that’s the only straightforward part
    MarketWatch5 days ago

    Salesforce.com buys Salesforce.org, and that’s the only straightforward part

    In a deal announced Monday afternoon, Salesforce will acquire an independent entity that was created to sell Salesforce software at a discounted rate to nonprofits, schools and other groups that struggle to pay for high-value software

  • Bloomberg5 days ago

    Salesforce to Buy Public Service Affiliate for New Markets

    The San Francisco-based software maker will pay $300 million for Salesforce.org, which is currently a “California public benefit” corporation, the company said Monday in a statement. Salesforce said the combination will boost its fiscal 2020 revenue by $150 million to $200 million, and now sees adjusted profits of $2.54 to $2.56 per share. Salesforce.org, often mistaken for a philanthropic organization, will become a vertical within the software maker, giving its new parent company products for nonprofit and educational institutions.

  • TheStreet.com5 days ago

    Cramer: Buy Good Stocks Rather Than Sell Them if They Fall Despite Good Earnings

    Jim Cramer has unveiled his "5 Rules for Trading Stocks During Earnings Season," and Rule No. 3 is a bit counterintuitive -- "Expectations Matter More than Sales or Profits," so be ready to buy good stocks when they fall despite impressive earnings. "The deck is so darned short and the planes are so huge that it requires the pilot to almost kill the engine to be sure he doesn't overshoot," Cramer recalled. "As the planes would approach, the controller would say 'You're coming in hot, you're coming in hot, you're coming in hot' -- always trying to get the pilot to slow down.

  • MarketWatch5 days ago

    Salesforce.com buys Salesforce.org for $300 million

    Salesforce.com Inc. is buying Salesforce.org -- created to distribute Salesforce software at reduced amounts to nonprofits, schools and other organizations -- for $300 million. Salesforce.org will change from a public-benefit corporation to an arm of Salesforce dedicated to the same task, while the purchase price goes to the nonprofit Salesforce.com Foundation. Salesforce said it would continue "to provide free and highly discounted software to nonprofits and education institutions around the world" while making the philanthropic-minded arm of its business an actual software vertical within the company. Salesforce said it would add $150 million to $200 million in revenue to its books this fiscal year, but said the transaction's one-time, $200 million non-cash charge reduced its adjusted-profit forecast by 20 cents a share for the year. "The impact on GAAP EPS is expected to be more significant than for non-GAAP EPS due to the additional stock-based compensation charges and the impact of other various non-cash items, including income tax adjustments," the software company said. Shares declined slightly after the announcement was made; Salesforce executives planned a conference call for 2 p.m. Pacific time.

  • Salesforce and Salesforce.org Combine to Drive Greater Philanthropic Impact and Success for Social Good Organizations
    PR Newswire5 days ago

    Salesforce and Salesforce.org Combine to Drive Greater Philanthropic Impact and Success for Social Good Organizations

    SAN FRANCISCO, April 15, 2019 /PRNewswire/ -- Salesforce (CRM), the global leader in CRM, today announced that Salesforce.org, the independent nonprofit social enterprise, will be integrated into Salesforce. With Salesforce.org, Salesforce will scale its philanthropic efforts and create strategic synergies and operational simplicity that will enable the company to drive even greater success for its nonprofit, education and philanthropy customers. When Salesforce was founded in 1999, the company pioneered the 1-1-1 model of integrated corporate philanthropy, donating one percent of its equity, product and employee time to communities around the world.

  • Stock market investors are split into bull and bear camps — taking the middle road is the way to go
    MarketWatch6 days ago

    Stock market investors are split into bull and bear camps — taking the middle road is the way to go

    On the other hand, a smaller number of investors are convinced the market is heading to new highs and are aggressively buying technology stocks. In late 2007, we at the Arora Report said stocks were in trouble. The answer lies in Arora’s Third Law of Investing: Make investing and trading decisions based on probabilities because it’s the only realistic and profitable approach.

  • Seriously, Uber May Never Actually Turn a Profit
    InvestorPlace6 days ago

    Seriously, Uber May Never Actually Turn a Profit

    Not to be outdone by its now-publicly-traded rival Lyft (NASDAQ:LYFT), this past week Uber submitted its initial public offering paperwork to the SEC. The long-awaited and oft-discussed Uber IPO is finally about to happen. * 10 Stocks That Are Screaming Buys Right Now Source: Shutterstock A bunch of traders are buzzing because… well, many traders love cool concepts. At the other end of the spectrum, naysayers can't get past the line in the official filing that says the company "may not achieve profitability."It's a dire suggestion, but it's not the red flag many investors are making it out to be.Most companies that aren't profitable at the time of their IPO warn in their S1 paperwork they may never turn a profit. Twitter (NYSE:TWTR), for instance, cautioned investors in 2013 in its S1 filing it "may not be able to achieve or subsequently maintain profitability."InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut it's making money now.In 2003, salesforce.com (NYSE:CRM) was worried enough to issue this warning to would-be IPO buyers: "If our revenue does not grow to offset these expected increased expenses, we will not continue to be profitable."Salesforce has earned $1.11 billion over the course of the past four reported quarters.It's boilerplate language.Still, investors would be wise to be wary of the Uber IPO because it may not actually ever turn a sustained profit, even if the warning in its recent paperwork was just the usual rubber-stamped disclaimer. The PlanWhether or not Uber said so, there's a very real possibility the company may never create sustained profits.Uber, of course, is a ride-hailing company. Tech-centered and volume-minded, the organization was founded in 2009, with relatively humble beginnings. Travis Kalanick had sold Red Swoosh just a couple years prior, freeing him to partner up with computer programmer Garrett Camp to create what was then called UberCab.The app itself was and still is the centerpiece of the company's operation, which has since cultivated an army of roughly 3 million independently-contracted drivers.It's clever competition to conventional taxi cab companies. Those 3 million drivers all work remotely, and independently, and are dispatched by the same platform that powers the consumer-facing app. It's arguably more efficient than traditional taxi companies.That doesn't make it profitable, though.It's complicated, but the short explanation of the concern is this: Uber spends more on regular, recurring operating costs than it collects in net-revenues.That may not always be the case. In fact, Uber specifically believes that won't be the case in the foreseeable future. The plan is to grow ride-hailing revenue to the point where they finally exceed fixed, unavoidable costs. Higher fares aren't likely to be a component of that improvement, as it faces off with Lyft and other, more localized players. Paying its drivers less isn't a great option either. The plan is to grow the number of rides it facilitates.Even that, however, may not get the company over the hump. Scale Isn't Necessarily the KeyMany observers have laid out the flawed thinking in Uber's growth plan. But, giving credit where it's due, it's Intelligencer's Yves Smith that makes the most cogent case against buying into the Uber IPO. He penned the following late last year:"Uber is a taxi company with an app attached. It bears almost no resemblance to internet superstars it claims to emulate. The app is not technically daunting and does not create a competitive barrier, as witnessed by the fact that many other players have copied it… [apps] do not create network effects. Unlike Facebook or eBay, having more Uber users does not improve the service."Smith adds a subtle but important detail the matter, noting "More drivers means more competition for available jobs, which means less utilization per driver. There is a trade-off between capacity and utilization in a transportation system, which you do not see in digital networks."In short, an Uber swing to profitability assumes that the ride-hailing market (however they're hailed) is not yet mature, and further assumes that competitors won't win any market share if the market does somehow expand.And the fact that Uber drivers feel they're being forced to break the law as well as being forced to cancel rides when fares are too low suggests the supply-demand dynamic has already run out of runway. Bottom Line on Uber IPODon't misread the message: The Uber IPO may prove amazingly fruitful for traders able to actually buy into the initial public offering and offload their Uber stock at a much better price in the open market. Although it didn't work for Lyft this way, Uber shares may ride the post-IPO buzz higher and higher. Euphoria is a powerful force.Sooner or later, though, Uber has to realistically prove to investors that it may be able to turn a decent profit at some point in the future. The company's top brass continue to tacitly hint that it can, but consider the source. The more convinced investors are that Uber will be viable one day, the more money those insiders make on the shares they already own.Notice, in particular, that Uber has yet to offer any solid growth outlook that's based on verifiable, validated data that jibes with the market's growth expectations.Never say never, but this smells a lot like another Groupon (NASDAQ:GRPN) or Spotify (NYSE:SPOT). Consumers love their products, but the companies aren't actually "businesses" with a model capable of consistently producing earnings. * 10 Dow Jones Stocks Holding the Blue Chip Index Back To that end, there's a reason LYFT stock is down 16% from its IPO price in just a few days.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Seriously, Uber May Never Actually Turn a Profit appeared first on InvestorPlace.