Salesforce’s market cap was ~$2.9 billion at the end of trading on May 15, 2017, which was much lower than that of its peers.
Salesforce’s 14-day RSI score is 89, which shows that the stock is neither overbought nor oversold.
Launched in September 2015, App Cloud now has more than 5.5 million apps and 2.3 million developers. It was designed specifically for the enterprise crowd.
Salesforce’s cash flow growth surpassed its revenue growth. Its operating cash flow grew 29%, while its revenues grew 26% in fiscal 2017.
Salesforce has cash, cash equivalents, and marketable securities of ~$2.2 billion. Its total debt is $1.8 billion.
Salesforce constitutes ~2.4% of the Third Point LLC portfolio, which the hedge fund acquired at an average price of $79.89 per share.
The average “life” of the customer of SaaS companies like Salesforce depends on the time the company has had customers and the amount of churn.
On January 3, 2017, the US dollar peaked at $103.80, its highest level in 14 years.
The strong US dollar is expected to be one of the key downside catalysts for software companies like Microsoft (MSFT), IBM (IBM), and Oracle (ORCL), which generate a majority of their revenues outside the US.
According to an IDC Research report released in February 2017, the United States (SPY) could be the largest market for the public cloud between 2015–2020, generating more than 60% of total global revenues.
Gartner expects global IT spending to grow 1.4% to $3.5 trillion in 2017 on the back of the confluence of cloud computing with emerging digital technologies like AI and blockchain.
In late 2016, Salesforce was named a Leader for SFA (sales force automation) in Gartner’s Magic Quadrant for the tenth straight year.
According to DestinationCRM, Salesforce stood as the winner for the second straight year among its peers—Adobe, Oracle, Salesforce, IBM (IBM), and Teradata (TDC).
In April 2017, Salesforce launched its latest version of Sales Cloud—Einstein High-Velocity Sales Cloud—to make AI (artificial intelligence) more accessible.
Salesforce Ventures, established in 2009, invests in the next generation of enterprise technology. Through its four funds, each armed with a different objective, Salesforce has raised $350 million.
To further enhance the reach and penetration of Einstein, Salesforce partnered with IBM (IBM).
In the past seven years, including its fiscal 4Q17 results, Salesforce (CRM) has met or exceeded analysts’ expectations with each passing quarter.
After shedding close to 10% of its market value in 2016, Salesforce (CRM) started 2017 on a positive note. On May 12, 2017, Salesforce stock reached an all-time high of $88.04.
US-based (SPY) NetApp (NTAP) generated a 1.4% return in the trailing-one-month period.
As we saw earlier in this series, analysts expect storage technology (QQQ) firm NetApp’s (NTAP) revenue to rise 4.3% YoY (year-over-year) in fiscal 4Q17 to $1.44 billion.