|Bid||122.10 x 800|
|Ask||130.41 x 1200|
|Day's Range||127.22 - 128.67|
|52 Week Range||94.81 - 130.16|
|Beta (3Y Monthly)||0.93|
|PE Ratio (TTM)||30.77|
|Forward Dividend & Yield||1.70 (1.32%)|
|1y Target Est||N/A|
Pirates president welcomes 600 SAP employees and hints at major project to come, which is expected to include entertainment and several buildings.
Of the many categories in the tech world, none is more ferociously competitive than enterprise. For decades, SAP, Oracle, Adobe, Microsoft, IBM and Salesforce, to name a few of the giants, have battled to deliver the tools businesses want to become more productive and competitive. Last year alone, the top 10 enterprise acquisitions were worth $87 billion and included IBM’s acquiring Red Hat for $34 billion, SAP paying $8 billion for Qualtrics, Microsoft landing GitHub for $7.5 billion, Salesforce acquiring MuleSoft for $6.5 billion and Adobe grabbing Marketo for $4.75 billion.
Business Software Vendors' Latest: MSFT, IBM, SAP, ORCL, and ADBE(Continued from Prior Part)SAP is transitioning to the cloudActivist investor Elliott last month revealed that it owns shares worth ~$1.3 billion in SAP SE (SAP), representing a ~1.0%
Business Software Vendors' Latest: MSFT, IBM, SAP, ORCL, and ADBE(Continued from Prior Part)SAP says all the pieces are in placeSAP SE’s (SAP) buying other companies to help it strengthen its existing businesses and diversify into new markets has
Last week saw Apple expanding its partnership with SAP, Spotify challenge the Apple tax in the EU, Apple scooping up Intel 5G employees while seeing its iPhone market share continue to slide.
Adobe (NASDAQ:ADBE) continues to prove why it is one of Wall Street's favorite investments. On March 15, the creative software maker announced strong Q1 results as the company delivered broad-based sales growth, lifting Adobe stock. Specifically, ADBE reported record revenue of $2.6 billion, up 25% year-over-year.Source: Shutterstock A big winner over the past several years, ADBE still remains on track to produce consistent growth for the foreseeable future. However, this week has once again reminded investors what volatility due to political uncertainty, such as the U.S-China trade wars, may mean for their portfolios. Therefore Adobe stock price might be weak in the short-term, especially between now and June 18, when the company is slated to report its Q2 earnings. * 7 Dangerous Dividend Stocks to Stay Far Away From Adobe Stock Thrives on Strong FundamentalsADBE reports the revenue of two of its segments: Digital Media and Digital Experience.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe Digital Media segment includes revenues from Adobe Creative Cloud (CC) and Adobe Document Cloud. In recent years, Creative Cloud's revenues have increased by high double-digit percentage levels, driven by increases in subscriptions by both B2C and B2B customers In Q1, the Digital Media segment's revenue was $1.78 billion, while Creative's revenue jumped to $1.49 billion and Document Cloud reached record revenue of $282 million.The Digital Experience segment includes Adobe Experience Cloud, which offers a range of cloud-based tools for marketing, advertising, analytics and content management. Customers use these tools to better manage their marketing initiatives. This segment has been been adding more enterprise customers to its ecosystem. Its Q1 revenue rose 34% year-over-year to $743 million.Many analysts agree that Adobe's 2018 acquisition of Marketo, a marketing software and e-commerce platform, as well as Magento Commerce, a market-leading e-commerce platform, has helped ADBE grow its market share in Software-as-a-Service (SaaS) and become a digital-marketing platform leader.Going forward, ADBE has enough cash on hand to finance more potential acquisitions to fuel the growth of its digital-experience segment. ADBE's Subscription Model Has Boosted Adobe Stock PriceAdobe's flagship software products for video, graphic and audio content creation include Photoshop, Illustrator, Acrobat and Dreamveawer. In 2012, when Adobe first announced that it had switched from a software- licensing model for Adobe Creative Cloud to a monthly subscription-based model, Wall Street was not sure as to how this radical approach would affect Adobe stock price.Overall, Adobe offers powerful solutions that face little competition. As a result, many customers decided to move to Adobe's subscription cloud solutions because there was no real alternative. The subscription model has enabled Adobe to achieve high gross margins and raise its prices without losing customers.Fast forward to 2019, and investors realize that the significant risk that Adobe has taken has paid off: Users, the company and investors are all happy with the subscription model.Users always have the latest versions of Adobe's software, ADBE does not have to persuade customers to buy a newer version every few years, and the owners of Adobe stock have been thrilled with its recurring, stable income;, asabout 85% of ADBE's revenue now comes from subscriptions.As ADBE offers more cloud-based products, Wall Street is expecting the company's dominance and revenue to grow. So far, most of ADBE's revenue has come from the U.S. But Wall Street believes the company can easily grow its businesses in both Asia and Europe, adding to the current $3 billion of annual revenue that ADBE obtains from these regions.Investors also believe that Adobe will be able to push deeper into customer relationship management (CRM) through Sensei, its artificial intelligence (AI) platform, boosting its top line and Adobe stock . Adobe's Partnership With MicrosoftAdobe's strengths are not limited to its robust financial results. Management has also been taking important steps to make the company a leader in the content-creation space.Since 2016, Adobe has had a powerful partnership with Microsoft's (NASDAQ:MSFT) cloud business, Azure. The two companies work together to provide cloud-based data to enterprises.Additionally, Adobe's Experience Cloud and Microsoft's Dynamics CRM platform will be integrated with Microsoft's LinkedIn. Pooling Adobe platform's data with Microsoft's tools could cause the gains of Adobe stock to accelerate.The strong and unique collaboration between Adobe and Microsoft has fueled rumors that Microsoft may purchase Adobe as early as 2020. Many analysts increasingly believe that Microsoft is looking at Adobe as more than just a partner. If MSFT does buy ADBE, the owners of Adobe stock are likely to be rewarded handsomely. The Bottom Line on Adobe StockADBE is the dominant player in the cloud-based software market. Adobe stock is a winning name that many investors are likely to stick with. Within two to three years, investors who buy Adobe stock are likely to be rewarded handsomely. By then, ADBE could become a takeover target.Tech stocks may continue to be volatile in May, and I would not advocate trying to identify stocks that could be immune to a U.S.-China trade war. In the past few trading days, ADBE stock price is down almost 10%.But if Adobe stock price declines further, long-term investors may find Adobe stock particularly attractive. I believe Adobe stock price is likely to find major support between $250 and $260.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dangerous Dividend Stocks to Stay Far Away From * 7 Tips for New Investors Young and Old * 10 Great Stocks to Buy on Dips Compare Brokers The post Adobe Stock Is a Good Long-Term Investment appeared first on InvestorPlace.
Elliott, which manages $34 billion in assets, disclosed its first large European tech investment on April 24, the day SAP announced quarterly results, saying it backed a new management goal of boosting operating margins by 5 percentage points through 2023. McDermott said it would be possible to hit the margin target by ensuring that revenue growth outpaced costs, indicating that there was no pressure from Elliott for further retrenchment after a recent round of job cuts.
Germany's SAP partnered with Apple in 2016 to rebuild mobile apps for its existing product lines, including human resources and expense management, to run natively on Apple's iOS operating system. Native apps are developed specifically for the device's hardware and software, meaning they run more smoothly than web or cloud-based apps designed to work across multiple platforms. It will also be possible to run the applications on Apple's Mac computer range, the companies said in a joint statement.
Up to 50,000 companies running SAP software are at greater risk of being hacked after security researchers found new ways to exploit vulnerabilities of systems that haven't been properly protected and published the tools to do so online. "Basically, a company can be brought to a halt in a matter of seconds," said Onapsis Chief Executive Mariano Nunez, whose company specializes in securing business applications such as those made by SAP and rival Oracle.
Uber Freight, with its growing suite of tools, has been trying to empower small fleets and owner-operators to allow them to compete on an even playing field. This morning, Uber Freight announced a partnership with SAP SE (NYSE: SAP) that will integrate Uber Freight into the into SAP Logistics Business Network, letting supply chain participants from both companies access transportation rates from Uber's digitally activated carrier network and gain real-time quotes and guaranteed freight capacity, greatly simplifying load management and execution. "Finding and booking freight can be the most expensive and often the most complex piece of the supply chain," said Hala Zeine, president, SAP Digital Supply Chain.
The shares of the cloud-based customer relationship management (CRM) software company Salesforce.com (NYSE:CRM) is up more than 35% over the past year. The overall fundamental strength of the company has been the catalyst behind the Salesforce stock returns.Source: Shutterstock Between now and when Salesforce reports earnings on June 4, there is likely to be volatility and even some profit-taking in the stock price, especially as many other technology firms also report in the coming weeks.However, I'd encourage long-term investors who would like exposure to a growth company in the sector to regard any dip in the share price as an opportunity to add CRM stock to their portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dividend Stocks That Could Double Over the Next Five Years Salesforce Is an Industry LeaderNot many investors are fully versed in the fundamental strengths of the Salesforce stock. In a nutshell, customer relationship management software systems connect businesses with customers. For example, the software enables a company's support and sales teams to have all possible information about any given customer so that they can offer the right mix of customer service at the right time. It is the biggest software market globally.Wall Street credits Marc Benioff, Chairman and co-CEO with popularizing the software for managing customers, sales, and service. Revenues in the CRM market are expected to reach $80 million by 2025. And Salesfoce.com is regarded as the clear industry leader.Salesforce's market share is about 20% and over 80% of all Fortune 500 companies use its CRM software. On the other hand, the respective market share of each of its competitors such as Oracle (NASDAQ:ORCL), SAP SE (NYSE:SAP), Microsoft (NASDAQ:MSFT), and Adobe (NASDAQ:ADBE) is in single digits. CRM Stock Has Robust Fundamental Numbers On March 4, Salesforce announced results for its fiscal Q4 as well as the full fiscal year that ended on Jan. 31, 2019. "We had another year of outstanding revenue growth, surpassing $13 billion in revenue faster than any other enterprise software company in history," said Mr. Benioff.Growth was strong across geographic markets, products, and sales segments. CRM stock increased its fourth-quarter revenue to $3.6 billion, a jump of 26% year-over-year (YOY). It also reported a total of $5.38 billion in unearned revenue, an increase of 25% YOY. This metric accounts for sales that Salesforce has already made but, due to accounting rules, will only recognize later within the next 12 months.The jump in revenue also drove a 29% increase in CRM's quarterly operating cash flow, to $1.33 billion. Finally, the company announced an annual revenue goal of $26 billion to $28 billionby fiscal year 2023, an impressive feat for a company with a market cap of over $126 billion. Salesforce Stock and Strategic InvestmentsSalesforce has been branching out into other business ventures, too. This expansion is made possibly partly due to its steady free cash flow (FCF), which measures a company's ability to produce cash. The juggernaut's total free cash flow for the trailing twelve months (TTM) ended in January was $2.8 billion.Investors care a lot about FCF as it can be used in a discretionary manner, for example, to invest in growth opportunities and to strengthen CRM's balance sheet further.The cash-rich company is also not shy to acquire smaller businesses that management deems a good fit with its existing product lines and growth ambitions. The $6.5 billion takeover of the business software company MuleSoft in 2018 was Salesforce's largest acquisition to date. Analysts believe that MuleSoft will increase Salesforce's ability to help customers integrate other systems into Salesforce.Salesforce, the most dominant force in the global CRM industry, has so far invested $1.3 billion in other promising ventures and public companies. Its focus is on cloud companies.Several of CRM stock's past investments include Docusign (NASDAQ:DOCU), Domo (NASDAQ:DOMO), Dropbox (NASDAQ:DBX), SurveyMonkey parent SVMK (NASDAQ:SVMK), and Twilio (NYSE:TWLO). Its most recent investment has been in Zoom Video Communications (NASDAQ:ZM) which went public on Apr. 18. In other words, these investments help Salesforce position itself for future success. What Could Derail CRM Stock Short-Term?Year-to-date, CRM stock is up 17%. As a result of the recent impressive run-up in the stock price, short-term technical indicators have become somewhat overextended. Investors who pay attention to short-term oscillators should note that Salesforce's technical message has also become "overbought."Furthermore, over the past few weeks, CRM stock has been trading between $150 and $160, a range that is likely to be broken soon either to the upside or to the downside.Should bulls reignite, they could easily push Salesforce stock over $165. On the other hand, if there is a pullback, the $145 level looks like a spot to me to consider buying into CRM stock.Although I'm expecting some short-term profit-taking in CRM stock, I'd not fight the tape and would be willing to re-evaluate the technical charts in the coming days.Salesforce stock's beta is 1.37, which means its volatility on average is 37% higher than that of the broader market. Therefore, if the industry or the overall market declines as other companies release earnings, Salesforce stock price may also be adversely affected.If you are worried about the overall earnings season in May and would like to protect some of your profits in the CRM stock, you may consider a covered call strategy with approximately a five-week time horizon.In that case, you may, for example, buy 100 shares of CRM at a limit price of $163.09 (the closing price on Apr. 25) and, at the same time, sell a CRM May 31 $160 call option, which currently trades at $6.65.The $160 option is slightly out-of-the-money, offering downside protection in case of volatility and a decline in Salesforce stock.This call option would stop trading on May 31 and expire on June 1.I would not advocate bottom-picking in case of near-term price weakness. Yet, I find CRM stock to be a compelling buy candidate and by the end of 2020, I'd expect the shares to reach $175. In other words, it's still a good time to be bullish on Salesforce. Bottom Line on CRM StockSalesforce stock is a fundamentally sound stalwart investment with further broad-based growth prospects, leadership in the respective market, and proactive management -- factors that are likely to translate into a strong balance sheet and robust bottom line in the rest of the decade.Investors who are interested in software stocks or cloud-based services, but do not want to commit all their capital to a single stock such as Salesforce may also consider investing in various exchange-traded Funds (ETFs) that have CRM stock as a holding, including iShares Expanded Tech-Software Sector ETF (NYSE:IGV), First Trust Cloud Computing ETF(NASDAQ:SKYY), or PowerShares Russell Top 200 Pure Growth Portfolio (NYSEARCA:PXLG).As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post The Rally in Salesforce Stock Still Has Plenty of Steam appeared first on InvestorPlace.
U.S. activist investor Elliott revealed a 1.2 billion euro ($1.3 billion/£1.04 billion) stake in SAP on Wednesday and said it supported a new management efficiency drive, sending shares in the German business software company to a record high. SAP has until now escaped the attention of activist investors, steered by co-founder and Chairman Hasso Plattner who has withstood tough competition from U.S. rivals and is still the biggest shareholder in the German company with 6.5 percent. It reported an adjusted operating margin of 24 percent for the first quarter as it grapples with a catch-up transition to cloud computing.
Elliott Management Corp.'s investment comes months after SAP announced 4,400 layoffs and the departure of several top executives.
hit an all-time high in European trading after the company raised its operating profit outlook and U.S. activist investor Elliott revealed a €1.2 billion ($1.3 billion) stake in German cloud computing company. In the U.S., American depositary receipts were up 10.3% to $126.57. Cloud, software and total revenue was up double digits in the quarter.