|Bid||161.16 x 800|
|Ask||161.41 x 1000|
|Day's Range||158.55 - 161.49|
|52 Week Range||120.16 - 167.56|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||133.83|
|Earnings Date||Mar 2, 2020 - Mar 6, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||190.68|
We found three cloud-focused software stocks using our Zacks Stock Screener that investors might want to consider buying for 2020...
After leaving its chief operating officer position vacant for nearly a year, Salesforce fills it with this seasoned executive and bolsters its potential succession planning.
Fresh off opening its Ohana Floor in its Salesforce Tower London, the tech behemoth said Thursday it plans to double its workforce in Denver in eight years.
Salesforce is expanding its presence in Denver, with a new office at 17th Street Plaza in Lower Downtown and plans to double its workforce over eight years. The company plans to move into the building at 1225 17th St. starting in late 2020, according to a blog post by Salesforce. Salesforce, a global leader in customer relationship management, or CRM, first came to Colorado in 2013.
Salesforce (NYSE: CRM), the global leader in CRM, today announced that Salesforce President and Chief Product Officer Bret Taylor has been appointed President and Chief Operating Officer. In this role, Taylor will lead Salesforce's global product vision, engineering, security, marketing and communications. Taylor will continue to report to Chairman and co-CEO Marc Benioff.
(Bloomberg) -- The embattled co-working company WeWork completed the first of what it hopes will be a series of asset sales by finding a buyer for Conductor, a unit that makes marketing software used by Visa Inc. and Samsung Electronics Co.Seth Besmertnik, who co-founded Conductor before selling it to his college classmate Adam Neumann, will stay on as chief executive officer of the newly independent entity, the companies plan to announce Thursday. Besmertnik and other investors will contribute $15 million to fund operations and grant Conductor’s 250 or so employees majority ownership of the business through founder-class stock. Conductor and WeWork declined to disclose terms of the sale.For WeWork, selling off side businesses and turning attention back to co-working is a primary element of the turnaround plan set by the company’s new management. In October, SoftBank Group Corp. agreed to take a majority stake in WeWork, after a failed initial public offering put the company in danger of running out of money and cost Neumann the CEO job. SoftBank helped bring in new leaders, who are eliminating 2,400 jobs. WeWork is in talks to sell another business, Managed by Q, to a group of investors that includes the co-founder of that startup. And WeWork said Thursday that it’s shuttering a unit called Spacious that it acquired less than four months ago.Recent events have weighed heavily on morale inside WeWork. Conductor executives hope the new employee stock plan will raise spirits. In addition to holding a majority of stockholder votes, staff will be asked to elect a representative to the board. “This will ensure, in the long term, the company is always acting in the best interest of all the shareholders and that the employees have access to information about how we’re running the company,” Besmertnik said.Besmertnik helped start Conductor in 2010, eventually amassing more than 400 customers using its software to design marketing campaigns and optimize websites for search engines. Conductor had raised more than $60 million in venture funding, a laudable figure for a corporate software company but far from the more than $12 billion Neumann took in for WeWork.Investors had entrusted Neumann to build a global empire of office space for rent. WeWork’s valuation kept climbing, and Neumann seemed to be unstoppable. WeWork paid $126 million, not including performance bonuses, for Conductor last year. The deal would give Conductor cash to invest in research and development and double the size of that team. In return, Neumann gained a new channel of communication with Citigroup Inc., Salesforce.com Inc. and other Conductor customers right as WeWork was trying to recruit larger companies, which made up 25% of its membership at the time.The deal also reunited Besmertnik with Neumann, nearly two decades after they met as students at Baruch College in New York City. Both men dropped out to pursue business careers before returning later to earn degrees. Onstage at an industry conference a month after the acquisition, Besmertnik embraced Neumann, who greeted Conductor employees as family. “Welcome home,” Neumann said.Besmertnik said that while WeWork’s meltdown has been hard on the Conductor team, he’s grateful to have been a part of the company. Artie Minson, one of two men who replaced Neumann as CEO, praised Besmertnik in an emailed statement and said the divestiture is “a positive step forward for both WeWork and Conductor.” The buyout was partly financed by Besmertnik, along with Selina Eizik, the chief operating officer at Conductor, and Jason Finger, a founder of the Grubhub Inc.-owned food delivery app Seamless.Speaking from his New York office, which is lined with action figures and features a whiteboard covered in inspirational quotes (“The world is a reflection of you.”), Besmertnik said he’s focused on enforcing a strong company culture and a “people-first approach.” He hopes the new stock ownership program for employees sets an example for other businesses to follow, he said: “I’ve always felt the system wasn’t fair. If there happens to be a new CEO or a new board that doesn’t have the same willingness to fight for the people, employees stand to get the short end of the stick.”(Updates with Spacious closure in the third paragraph.)To contact the author of this story: Candy Cheng in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.com, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Software stocks rallied in early 2018 and 2019, then pulled back as some analysts questioned their valuations. Heading into 2020, many software stocks have rebounded from a September-October swoon.
(Bloomberg) -- High-multiple software stocks have struggled over the past few months as analysts reassess their growth prospects and valuations, and the group could see additional weakness in 2020, creating an environment where more-defensive legacy names are more favored, analysts said on Wednesday.“There is a greater level of concern that the global economy could enter into a recessionary environment next year,” wrote Gregg Moskowitz, an analyst at Mizuho Securities. As a result, “there may be an increased risk of a rotation to value stocks that could cause multiple compression among higher growth companies.”Despite a potential risk to stock multiples, the firm expects software demand to remain robust next year, particularly in the sub-sectors of cybersecurity and cloud computing. It added that “barring a significant recession,” many companies would “navigate these issues very well,” and views both Microsoft Corp. and Salesforce.com Inc. as well positioned.Salesforce was also singled out by Cowen, which named the company as one of its “best ideas” for 2020.Next year “could prove to be a volatile year for higher multiple stocks given trends we’ve seen over the last few months,” Cowen analyst J. Derrick Wood wrote. In contrast, he said, Salesforce looks like “an attractive defensive growth investment,” given its lower valuation and “positioning around high growth/high value segments of software.”A basket of high-multiple software stocks tracked by Goldman Sachs fell as much as 2.6% on Wednesday, and the index was on track for its sixth straight decline, its longest streak of declines since October 2018. Even with the recent decline, the index remains up more than 40% in 2019.Among the names falling on Wednesday was Slack Technologies, down over 6%, Coupa Software, off about 4% and Zscaler, which fell 3.5% despite bullish commentary from BofA. Atlassian Corp. sank 5.7%, while Domo Inc. was off 4.2%. Cornerstone OnDemand and HubSpot each fell more than 3%. Separately, Zendesk fell 1.7%, on pace for a fifth straight decline.UBS analyst Jennifer Swanson Lowe on Wednesday wrote that small- and mid-cap software-as-a-service companies were “working through the bumps,” even as the overall demand environment for software was “healthy” going into the end of the year.The comments followed a UBS conference, where companies like Zendesk, Hubspot and Domo “highlighted strong secular demand trends, but also scaling challenges,” according to a report. Lowe added that software pertaining to security, cloud computing and automation were among the categories with “strong market momentum.”A key catalyst for the software sector will come Thursday afternoon, when Adobe Inc. is scheduled to report its fourth-quarter results. In focus is whether the company is able to maintain revenue growth above 20%; Wall Street is currently expecting growth of 21%, according to data compiled by Bloomberg.“How investors react to Adobe’s earnings and commentary could presage how software companies and their underlying stock prices will behave in 2020,” wrote Richard Davis, an analyst at Canaccord Genuity.He said the 20% growth threshold “has taken on a near mythical importance,” and suggested that if companies fail to maintain this level, investors may start “changing their tune” on whether they are comfortable with growth that doesn’t come with operating leverage.To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Jeremy R. CookeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Salesforce.com (CRM) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
(Bloomberg) -- Oracle Corp. will move its marquee annual user conference to Las Vegas, abandoning its longtime venue of San Francisco due to the rising cost of visiting the city and its homeless crisis.Oracle’s OpenWorld will be held in Las Vegas beginning next year, the San Francisco Travel Association said Tuesday in a statement. The travel group, in an email reported earlier by CNBC, said the software company committed the conference to Las Vegas for three years, costing San Francisco an estimated $64 million. Oracle, headquartered about 22 miles south of San Francisco in Redwood City, California, told the travel authority that its conference guests were unhappy with San Francisco’s dirty streets and costly hotel rates, according to CNBC.Las Vegas is a key destination for technology conferences. Amazon.com Inc.’s cloud-computing arm, Dell Technologies Inc., Adobe Inc. and Hewlett Packard Enterprise Co. are just a few of the companies that host conferences in the desert city -- drawn to its large venues and inexpensive hotel room rates.Oracle declined to respond to requests for comment on the move.Oracle also holds OpenWorld conferences in Dubai, London, Singapore and Sao Paulo. The company encourages customers and partners to “register for an OpenWorld near you,” reducing the importance of the San Francisco gathering, where the company unveils new software products. The San Francisco OpenWorld generally attracted about 60,000 attendees. For years, the conference has been overshadowed by Dreamforce, rival Salesforce.com Inc.’s annual confab that the company describes as the world’s largest software conference. Dreamforce had more than 170,000 registered attendees in November.San Francisco hasn’t been a happy home for OpenWorld or Dreamforce for years, with residents complaining about street closures caused by the conferences and a surge of pedestrian traffic downtown. Local hotels swell room rates in anticipation of demand among attendees.Oracle held the first official OpenWorld conference at San Francisco’s Moscone Center in 1996, according to its website. The company’s user gatherings date back to 1982, when 50 attendees gathered for International Oracle Users Week at a hotel in San Francisco.To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
We at Insider Monkey have gone over 752 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of September 30th. In this article, we look at what those funds think of SAP SE (NYSE:SAP) based on that data and […]
Salesforce shares closed Monday, Dec. 9, at $157.48, up 15% year to date and in bull market territory at 31.1% above the Dec. 24 low of $120.16. The daily chart for Salesforce shows that the stock began 2019 with a strong upward surge. The close of $148.44 on Sep. 30 was also an input to my analytics, and the fourth quarter value level for Salesforce stock is $136.12.
Salesforce (NYSE: CRM), the global leader in CRM, today announced that Bill Patterson, EVP & GM, Service Cloud, will participate in an investor meeting hosted by Goldman Sachs & Co. on Tuesday, Dec. 10, 2019 at 5:00 p.m. (PT) / 8:00 p.m. (ET) in San Francisco, CA.
Adobe shares have surged 36% in 2019 to outpace its broader market's 24% climb. So, is now the time to buy Adobe with the company set to report its Q4 fiscal 2019 financial results on Thursday, December 12?
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 not 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 ranked 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 day 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 index.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 Quickbook. 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 Intuit, 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.
The database market is valued at roughly $68 billion. Currently, most of the technology on the market is currently outdated for the cloud era. This presents a dilemma for the companies that rely upon data and applications to support their businesses. MongoDB COO and CFO Michael Gordon joined The Final Round to discuss his database company and what it is doing to help fill the void in the market.