Salesforce stock ticks lower following downgrade
Yahoo Finance Live checks in on Salesforce shares following a stock downgrade from Atlantic Equities analysts to "Neutral."
Video Transcript
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SEANA SMITH: Time for our "Triple Play." Three stocks that we're watching in the final 30 minutes of trading. We have Salesforce, MGO Global, and Carvana. Our very own Josh Schafer is here with us. Let's kick it off with Salesforce. The stock getting downgraded by Atlantic Equities. It cut the rating on the stock to neutral, lowered their price target to $140 a share.
The company cited a number of reasons for the lowered outlook, but it did include the execution concerns, slowing growth that we've been talking about when it comes to Salesforce, also recent management departures, both co-CEO Bret Taylor and Slack CEO Stewart Butterfield recently announced their planned departures. It is the second downgrade that Salesforce has gotten this week.
They also announced companywide layoffs a couple of weeks ago just in terms of cutting their costs, trying to adjust in this slowing growth environment. But certainly, it sounds like from the analysts that have weighed in so far, we could see further downside ahead for this name.
JOSH SCHAFER: Definitely, Seana. I mean, in the short-term, though, it's been interesting to watch this week. The stock's up about 6%, I think, over the last five days. And you saw that partnership with Walmart. So it seems like while the Street is sort of questioning where things are headed in the long-term, investors aren't really bailing out quite yet.
