24 Apr

Why Salesforce’s Focus on Japan Is Opportune

WRITTEN BY Anne Shields

Companies focus on building hyperscale data centers

Earlier in this series, we discussed Salesforce (CRM) opening a data center in Japan (EWJ) to cater to its expanding customer base in the Asia-Pacific region. Amazon (AMZN), Microsoft (MSFT), IBM (IBM), Alphabet (GOOG), Salesforce, and other cloud providers are competing in adding new data center facilities.

According to Cisco Systems’ (CSCO) Global Cloud Index, the global count of hyperscale data centers is expected to grow from 259 in 2015 to 485 by 2020, which would amount to 47% of all installed data center servers by 2020. This growth could comprise 83% and 86% of the public cloud server installed base and public cloud workloads, respectively, in 2020. This trend explains tech giants’ billion-dollar investments towards data centers and IT (information technology) infrastructure.
Why Salesforce’s Focus on Japan Is Opportune

The Asia-Pacific region continued to grow the most

In fiscal 4Q17, Salesforce’s revenue grew in all geographies, as the above presentation shows. Salesforce derives the bulk of its revenue from the Americas. However, it is the Asia-Pacific (FAX) region that grew the most, growing 35%, or 30% in constant currency, in 4Q17. The Americas region posted ~$1.7 billion in revenue, Europe (EFA) posted ~$361 million, and the Asia-Pacific region posted ~$215 million. Salesforce’s continued growth in the Asia-Pacific region indicates its success in and keenness on implementing its diversification plans.

President Donald Trump’s proposed tax reductions are expected to bring in more than $2 trillion parked overseas by US companies. This move is likely to benefit Salesforce, which, unlike peers Microsoft, IBM, and Oracle (ORCL), generates a substantial portion of its revenue from the Americas.

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24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

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Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

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