|Bid||157.88 x 1100|
|Ask||157.99 x 900|
|Day's Range||157.59 - 159.50|
|52 Week Range||120.16 - 167.56|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||131.24|
|Earnings Date||Mar 2, 2020 - Mar 6, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||190.68|
The stock market rally started the week with losses, but erased losses by Friday. DocuSign, Shopify and Progyny broke out on news while RH soared. Google founders left management roles.
In the last week of November, Credit Suisse held its twenty-third annual Technology, Media, & Telecom (TMT) conference. It’s a popular annual industry event, connecting marketers and tech enthusiasts. Attendees get up-to-date info on the latest trends in the global tech industry.This year’s three-day event was no exception. It was well attended, with presentations by more than 20 tech companies, ranging from corporate giants like Microsoft to edgier companies like Splunk. Our attention was caught by three software companies in particular.None of the three are new companies – they’ve been around the block a few times – but all three are flagged in the TipRanks database as "Strong Buy" stocks. A closer look shows that all have over 20% upside potential, but that’s the only thing they have in common. All three inhabit the cloud-based Software-as-a-Service ecosystem, and are known for strong execution.5-star Credit Suisse analyst Brad Zelnick reviewed all three of these stocks. Zelnick is an expert on the tech industry, and is rated 139 out of more than 5,700 Wall Street financial analysts. This puts him in the top 3% of the analyst corps. Let's take a closer look:Upland Software (UPLD)Every office needs to manage the workflow, and that’s where Upland comes in. The company’s products offer solutions for a wide variety of essential aspects in business: project management, document automation and security, and enterprise sales, and on the customer-facing end, contact center and customer experience management.Upland expands its product line by both developing new software and acquiring smaller SaaS companies and absorbing their systems. At the end of November – on the same as the Credit Suisse conference began, in fact – Upland announced a new fungible loan, of $190 million, which will be applied toward new acquisition. The new loan adds to the $350 million the company already carries in outstanding loans. While substantial, the debt is sustainable. Upland uses the credit to generate returns, and the company’s share appreciation is robust.In Q3, Upland showed mixed EPS results. Earnings jumped from 38 cents per share one year ago to 52 cents per share now – but that number missed the 57-cent forecast by 8%. Reported quarterly revenues were within 1% of the forecast, at $55.07 million. This was up 48% year-over-year. Approaching the end of the calendar year, UPLD shares are up 33%, solidly outperforming the S&P 500 performance.Zelnick lays out the firm’s view of UPLD, saying, “We appreciate Upland’s unique and durable approach to creating value by acquiring often overlooked and under-loved SaaS companies and realizing significant synergies by integrating these businesses with its UplandOne platform... We particularly like management’s track record (25 acquired companies) and see much of the company’s future success within its control…” Zelnick’s $48 price target on UPLD suggests a 32% upside to the stock – a hefty potential well in line with his Buy rating. (To watch Zelnick’s track record, click here) Upland’s five most recent analyst ratings are all Buys, making the analyst consensus on this stock a unanimous Strong Buy. A look at the average price target shows that Zelnick is somewhat conservative in his outlooks – UPLD shares have an average target of $51.20, implying room for 41% growth on the upside. (See Upland's price targets and analyst ratings on TipRanks)Intuit (INTU)Our second company is best known for the products it offers to the general public rather than to businesses. In fact, it’s likely you have used an Intuit product – the company is the producer of the popular tax reporting software TurboTax. On the small business end, Intuit offers Quickbooks. These products, and others in the company’s line, exemplify Intuit’s name: they aim to make complex matters intuitive and easy for just about anyone.Easing navigation through modern life’s bureaucracy has been profitable for Intuit. The company brings in well over $5 billion in annual revenues, with 95% of that based on customers and activities in the US. In Q3 2019, INTU reported EPS of $5.55, for a 2% forecast beat and 15% growth year-over-year. The $3.27 billion in quarterly revenues were up 11% from the year-ago quarter.The company’s robust quarterly gains continued a long trend. INTU stock is up 185% over the past five years. In 2019, INTU has gained 29%, outpacing the S&P 500 gain of 24%. Not many companies can boast sustained growth of this magnitude.In his comments on Upland, Zelnick described an upbeat path forward for the company, writing, “Our blue-sky scenario assumes (1) better-than-expected penetration of QuickBooks Online in the US and (2) sustained growth in the Consumer Tax business as TurboTax Live takes share from the Assisted tax prep market.” His $300 target price implies an 18% upside for further growth.INTU’s Strong Buy consensus rating is based on 3 "buy" and 1 "hold" ratings issued in the past 3 months, indicating analyst confidence. Shares currently sell for $256, and the average price target is $306, suggesting the stock could rise about 20% from current levels. (See Intuit stock analysis on TipRanks)Salesforce (CRM)Among cloud software companies, Salesforce was an early leader. The company has become the best-known name in Customer Relationship Management (that’s the origin of the ‘CRM’ ticker). Salesforce products offer cloud solutions for sales and commerce tracking, databases, marketing, customer service, and analytics to businesses of all scales.With a market cap of $138 billion, Salesforce is already big – but last month the company said that it expects to double in size by fiscal year 2024. Revenues for fiscal 2019 were over $13 billion – by FY24, the company estimates it will bring in over $34 billion per year. In its most recent quarterly earnings report, CRM revealed $4.5 billion in revenues, beating the forecast by $50 million. EPS came in at 75 cents, 13% above the 66-cent expectation.Long term, CRM has been growing steadily. The stock is up 187% in the last five years, although that growth has slowed in calendar year 2019. CRM is up only 15% this year, noticeably trailing the S&P average gain. It’s still a steady appreciation, however, and combined with impressive revenue numbers gives a healthy outlook. Zelnick says, of the company’s path forward, “The target to double revenues in four years at this scale is a testament to the strategic nature of Salesforce and its leadership…”On his overall view of the company and its likely forecast, Zelnick writes, “Better than expected market share gains with large enterprise, increased cross-sell across the current customer base, and continued operational efficiencies driven by significant economies of scale result in faster revenue growth from F2019 to F2029…” His $185 price target suggests a 17% upside potential.A look at the averages shows that, once again, Zelnick is on the cautious side. CRM shares sell for $158, and the average stock-price forecast of $192 shows a possible upside of 21%. The Strong Buy consensus rating, based on 23 Buys and 1 Hold, shows that Wall Street is upbeat on Salesforce. (See Salesforce stock analysis on TipRanks)
(Bloomberg) -- As protests jolt Hong Kong business, organizations from Alibaba Group Holding Ltd. to universities are adapting by going digital, switching to video-conferencing app Zoom to conduct online investor briefings and virtual lectures.Zoom Video Communications Inc. joins a number of internet services that have taken off since the unrest began over the summer, from mobile messenger Telegram to work-at-home apps. In a financial hub that thrives on face-to-face deal-making and power lunches, Zoom helps fill a void created by transport disruptions and concerns about personal safety.Hong Kong’s business community leans on the app’s features, which include slide-sharing and support for up to 1,000 call participants, to carry on cross-border communications and with mainland China, where WhatsApp, Telegram and Google alternatives are banned. There’s a local version of Zoom that’s compatible, which is why the app’s downloads in Hong Kong soared 460% in November, after an escalation in protest violence first triggered a spike in September, according to researcher Sensor Tower.Read more: Zoom’s Eric Yuan, the CEO Who Made Videoconferencing Bearable“As schools continue to be in lock-down mode, we’ve had to move our lectures online to minimize disruption,” said Cheung Siu Wai, a professor at Hong Kong Baptist University, adding Skype has been another option.Now valued at $19 billion, Zoom’s shares have almost doubled since listing on the Nasdaq this year. It’s unclear how the spike in downloads may translate into revenue growth for Zoom, founded by Chinese emigrant Eric Yuan, who now resides in California.The company has various pricing tiers and recently added HSBC to a roster of paying clients that includes Uber Technologies Inc. and Zendesk Inc., underpinning 85% growth in revenue to $167 million in the October quarter. Representatives for the company, which is backed by investors including Salesforce.com Inc., Tiger Global and Qualcomm Inc., declined to comment on how the Hong Kong protests have affected its business.”With the periodic traffic disruptions, our colleagues have no choice but to use video-conferencing apps,” said Derek Chan, co-founder of Master Concept, a Hong Kong-based cloud service provider.To contact the reporters on this story: Carol Zhong in Hong Kong at firstname.lastname@example.org;Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- SoftBank Group Corp.’s massive investment in WeWork triggered a multi-billion-dollar writedown and a rare apology from founder Masayoshi Son. But one analyst argues the deal is likely to work in the end and SoftBank will have the “last laugh.”Chris Lane of Sanford C. Bernstein says WeWork can have a bright future if SoftBank overhauls the business plan and more carefully focuses on the evolution of the corporate office market. He likens WeWork’s business model to Starbucks’s, where branding, consistency and global scale give it an advantage over the competition.Lane argues WeWork can achieve profitability if it pulls back on extraneous areas and calms a frenetic pace of expansion to focus on filling up existing space. That will allow it to grab an estimated 8% of an emergent market for pre-fitted offices for corporate clients, almost like a white-label tech gadget or home appliance.“We think investors should think of the basic business as being similar to Starbucks,” Lane wrote in a 21-page research report. “While profitable, the scale of profits that can be generated from a single site is small. Starbucks as a corporation only makes sense if you plan to open thousands of outlets.”It’s a contrarian take on a WeWork deal that has been widely viewed as a fiasco. After SoftBank invested in the co-working startup, its planned initial public offering fell apart as investors balked at its enormous losses and conflicted governance. Son conceded “there was a problem with my own judgment” as he announced the writedown last month. SoftBank has put about $14 billion into a startup that’s now valued at less than $8 billion.The Japanese company’s shares are down about 30% from their peak in April. They were little changed on Friday.After discussions with management, Lane explains they see an opportunity for WeWork to move beyond the niche of providing space for entrepreneurs to offering flexible real estate for a broad range of companies. He calls this “managed space as a service” and compares it to “software as a service,” which is the way many companies now buy from Microsoft Corp. and Salesforce.com Inc. WeWork, Lane says, sees the potential to make $500 per month on memberships as “an on-going annuity,” far more than software generates.SoftBank named Marcelo Claure, the former chief executive at Sprint Corp., executive chairman of WeWork and put him in charge of the turnaround effort. Under his leadership, Lane says the company will be able to focus on profitability by stopping any incremental expansion, filling its existing space and slashing overhead by getting rid of expansion staff and non-core businesses. WeWork’s ability to gather data about office-use and optimize layouts -- while not entirely substantiated -- could prove disruptive to the industry, he added.He estimates that WeWork’s revenue will rise from $720 million a quarter to about $1.5 billion if it can push occupancy to 90% on its current portfolio. Once profitable, WeWork will once again try to go public, perhaps in 2023, and then raise additional capital to resume expansion, albeit more slowly than before.With a discounted cash flow model, Lane projects WeWork would have an enterprise value of $28.8 billion in 2025. That would make SoftBank’s 80% stake worth about $19.1 billion, roughly 40% more than the estimated $13.8 billion the company and its Vision Fund have invested.“We believe WeWork’s valuation is justified if you believe in the long-term, ‘office space’ will be a managed service outsourced to professionals – and that WeWork will be the leading global player,” Lane wrote. “Despite the huge embarrassment WeWork has been for SoftBank this year, we suspect SoftBank will have the last laugh when they bring the company back to market in a few years – bigger and profitable.”(Updates with shares in the sixth paragraph.)To contact the reporters on this story: Pavel Alpeyev in Tokyo at email@example.com;Takahiko Hyuga in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The search for spiritual enlightenment is hardly an unfamiliar concept for Silicon Valley pioneers. Benioff describes how he “flipped his organisation upside down and inside out”: allowing the development of software applications by non-employees; empowering external “Trailblazer” advocates inside his customers’ organisations; and creating Dreamforce, the sprawling festival-like extravaganza he hosts for staff and customers in San Francisco every year.
CEO Brad Birnbaum: "We currently have 150 employees and plan to double in headcount by the end of 2020."
Marc Benioff is aiming to become a trusted partner with client data, and that will win out over Mark Zuckerberg's manufactured arguments on free speech.
CRM stock has lagged software group peers as investors digest a number of big industry acquisitions, such as Tableau. Could digital transformation growth drive a Salesforce stock rally?
While enterprise software firms are still generally reporting good top-line numbers, the group remains in multiple-compression mode -- for now.
As long as the trade war with China persists, there will be plenty to cover on the daily PreMarket Prep Show. It just depends on which headline is determining the price action in the futures market during the pre-market session. Earnings from a few cloud stocks and corresponding price action were discussed on today's show.
(CRM) stock will rise because the company’s long-term growth story is still intact, according to J.P. Morgan. Salesforce.com shares (ticker: CRM) have rallied about 15% this year, versus a 29% gain for the Nasdaq Composite. Despite the mixed forecasts, J.P. Morgan analyst Mark Murphy reaffirmed his Overweight rating for Salesforce.com stock on Wednesday, citing optimism over the cloud software company’s long-term growth prospects.
Salesforce.com, Inc. (NYSE: CRM ) shares dipped 3.5% after the company reported third-quarter revenue and earnings ahead of consensus analyst expectations on Tuesday. Revenue performance obligation (RPO) ...
Benzinga Pro's Stocks To Watch For Wednesday Salesforce.com (CRM) - Released Q3 EPS and sales results, which beat analyst estimates. The company issued Q4 EPS guidance of $0.54-$0.55, which is below the ...
Dow Jones futures rose on China trade deal hopes, a day after Trump's trade comments. Alphabet CEO Larry Page stepped down with Google stock in a buy zone,
Salesforce.com Inc. topped Wall Street estimates for the quarter Tuesday but the cloud-based customer-relationship management software company’s earnings outlook for the quarter came in shy of consensus views.
Salesforce is slipping on Wednesday after reporting third-quarter results. But despite the fall the stock is setting up as a buy-the-dip opportunity. Shares of Salesforce had been under pressure in the days leading up to its earnings report.
On "Mad Money" Tuesday night, Jim Cramer spoke with Keith Block, co-CEO of Salesforce.com , the cloud computing giant that dipped 1.8% on a strong quarter that included some weaker-than-expected guidance. Block discussed Salesforce's plan to double the size of the company to $34 billion in revenues over the next four years. In this daily bar chart of CRM, below, we can see that prices turned lower from the middle of November at the same area that halted prices in March and April.
Perhaps RBC Capital Markets represented Wall Street's aggregate takeaway best: "Nice beat, conservative guide, that's the stock we like to buy."
Jim Cramer weighs in on Larry Page stepping down from his CEO role at Alphabet, how Marc Benioff has connected with customers in a way that Mark Zuckerberg dreams about and the Friday jobs report.