Salesforce stock ( NYSE:CRM ) increased by as much as 4.7% on Monday. The stock was still up 3.4% after the market closed.
A broad updraft fuelled gains for a wide range of stock. Still, despite a relatively chilly evaluation by a Wall Street analyst, the software-as-a-service (SaaS) pioneer gained momentum.
So, What Happened to Salesforce Stock?
Northland analyst Nehal Chokshi commenced coverage on Salesforce stock ( NYSE:CRM ) with a market performance (hold) rating and a price objective of $150. In perspective, it implies a potential gain of just 5% over the stock’s closing price on Friday.
The analyst interviewed the customer relationship management (CRM) expert and came away with mixed feelings. Chokshi’s research led him to conclude that Salesforce’s sales and service clouds, the company’s two major cloud platforms, had produced six straight quarters of 15%+ growth in constant currency and excluding acquisitions. He attributed the company’s profitability to its Customer 360 vision, which he views as a “durable differentiation.”
Unfortunately, Chokshi compares the firm to prior high-fliers such as HP Enterprise, Dell Technologies, IBM, VMware, Cisco Systems, and Oracle – a negative comparison. These corporations lost their competitive advantage by “purchasing brands rather than technology,” which he claims resulted in “slightly above-market growth rates.”
Salesforce Stock: What Next
As the ancient adage goes, “those who do not learn from history are bound to repeat it.” However, assuming that Salesforce would follow in the footsteps of these former IT giants may be a bi...
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