Salesforce stock has dropped after competitor SAP reduced its yearly revenue forecast. Salesforce CEO Marc Benioff claimed that SAP’s troubles aren't tied to industry struggles. He said that the troubles are due to CEO changes and because SAP has “not executed the cloud opportunity well,” according to Yahoo Finance.
What is Salesforce?
Salesforce is a San Francisco-based company that was founded in 1999. It is one of the top CRM (customer relationship management) platforms in the world. Over 150,000 companies work with Salesforce including Unilever, T-Mobile, and BBVA.
Customer 360 is one of Salesforce’s primary products. It is an integrated CRM platform that brings together a company’s teams in the areas of IT, sales, marketing, commerce, and service. The platform runs a suite of connected apps to help unite every part of a company.
In August, Salesforce reported that its quarterly sales increased 29 percent. Benioff said, “Our market share continues to grow.”
Why is Salesforce stock down?
Salesforce and SAP have been competitors in the cloud business for years. The Motley Fool stated that SAP’s revenue forecast “has broad implications for the entire sector” and that “the broader market is also tanking as COVID-19 cases in the U.S. have hit fresh records in recent days.”
Salesforce CEO Marc Benioff claimed that SAP's revenue problems don't reflect a global market decline, although its stock prices dropped after SAP’s lowered revenue projections were released. According to Yahoo Finance, in a Bloomberg television interview, Benioff said that SAP’s troubles are “unique to them” and largely related to recent shifts in company leadership.
What is Salesforce's stock price today?
Currently, Salesforce’s fiscal year revenue guidance is between $20.7 billion and $20.8 billion for growth of 21 percent–22 percent. Salesforce stock dropped and closed at $241.98 on Oct. 26. In pre-market trading on Tuesday, Oct. 27, the stock rose slightly to $244.50 as of 9:01 a.m. ET.
SAP's stock news today
SAP, which stands for Systems, Applications, and Products in Data Processing, is a global company that was founded in Germany in 1972. SAP is a top player in cloud computing with over 200 million users, according to the company's website.
SAP cut its yearly adjusted revenue projections from 27.8 billion–28.5 billion euros or $32.8 billion–$33.7 billion to a new projection of between 27.2 billion–27.8 billion euros or $32.1 billion–$32.8 billion.
New lockdown measures in parts of the world are impacting revenue projections due to lower customer demand. According to The Motley Fool, SAP said, “The COVID-19 pandemic [ ... ] is expected to impact the demand environment, particularly in hard hit industries, through at least the first half of 2021.”
What is Salesforce CEO Marc Benioff’s net worth?
Salesforce CEO Marc Benioff, who also co-founded the company, has a real-time net worth of $9.4 billion as of Oct. 27, 2020, according to Forbes. In August, as the demand for cloud computing shot up during the COVID-19 pandemic, Salesforce’s share price shot up as well, which took Benioff’s net worth from $5.8 billion in March to $10.5 billion.