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Should You Invest In Salesforce (CRM) Stock?

Find out if the Salesforce (CRM) stock could benefit your portfolio. Learn how Salesforce’s acquisition of Slack could affect the CRM stock. Invest in the best US stocks for as low as $1 on the Cube Wealth app.
December 2, 2020

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Salesforce (Ticker: CRM) is a cloud computing giant known for its relentless drive for growth, innovative marketing schemes and community projects with unique approaches like the 1/1/1 model. 


Salesforce IPO raised $110 Million back in 2004. The CRM stock's growth since then is predicated on the growing need for digital transformation projects in several companies.


But Salesforce has gone beyond its CRM roots.  Over the last three years, Salesforce has spent more capital ($45 billion) on new acquisitions than MSFT, SAP, and Oracle! 


This includes Slack Technologies, Salesforce’s latest acquisition estimated to be worth $27.7 billion. It is predicted that the purchase of Slack might lead to the dilution of equity for existing CRM investors.


The CRM stock has done pretty well since its IPO. But several existing CRM investors are on tenterhooks about Salesforce’s penchant for acquiring new businesses.


So in this story, we will walk you through important Salesforce (CRM) stock information to help you find out if the CRM stock would be a good addition to your portfolio.  


Salesforce Stock (CRM) Information At A Glance


1. Stock Name: salesforce.com, inc. (CRM)

2. Share Price: $222.53*

3. Market Cap: $203.61 Billion

4. Beta: 1.21 (Moderately Risky)


5. P/E Ratio: 57.68 (High)

6. 52 Week Low: $115.29  

7. 52 Week High: $284.50


Fun Fact: Salesforce coined and owned the term AppStore before Apple. Marc Benioff, CEO Salesforce, gave the term to Steve Jobs in 2008 as a thank you. 


Historical Performance


Source: Google


What Does Salesforces’ Acquisition Of Slack Technologies Mean For The CRM Stock?


  • Existing Slack shareholders will get $26.79 in cash and 0.0776 shares of Salesforce common stock.

  • It is predicted that Slack Technologies (WORK) acquisition could dilute existing Salesforce shareholders’ equity by 8% to 10%.

  • Slack Technologies, Inc. (WORK) stock rose nearly 40% when the acquisition news was announced. As of 01-12-2020, WORK stock closed at $43.84.

  • Salesforce stock fell after the acquisition and closed at $241.35 as of 01-12-2020.


Top 9 Salesforce Inc. (CRM) Acquisitions


1. Slack Technologies

2. Tableau

3. Mulesoft

4. Demandware

5. ExactTarget

6. ClickSoftware

7. Krux

8. Quip

9. Buddy Media


5 Benefits Of Buying (CRM) Stock


1. Unparalleled growth of CRM technology.

2. Increasing digital transformation projects.

3. More than expected October-quarter revenue ($5.24-5.25 billion Vs $5.01 billion).

4. Einstein AI technology.

5. Diverse portfolio of investments (Slack, Tableau).

Cons Of Buying CRM Stock


1. Too many acquisitions.

2. Speculated equity dilution.

3. Ever-increasing competition with Microsoft, Oracle, and others.


Should You Buy CRM Stock?


Solid Revenue: Salesforce’s FY2021 revenue is estimated to be close to $20.77 billion. The CRM stock has also done really well vs the tech industry since 2015 (210% vs. 125%). 


No Dividends: You won’t get dividends if you buy the CRM stock since Salesforce is focusing on increasing growth. Non-stop spending on acquisitions also seems to worry some of the existing CRM investors.


Suggestion: Buying any international stock would depend on our age, risk appetite, investment goals, and other factors. To know more about investing in the best US stocks based on your goals and risk appetite, speak to a wealth coach or download the Cube Wealth app today


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Before you buy any international stock, speak to a Cube Wealth Coach to know whether CRM, NFLX, AAPL, GOOG, FB, AMZN, TSLA and others are good fits for your portfolio.

Watch this video to learn how US stock advice works on the Cube Wealth app

*Note: All facts & figures as of 04-01-2021

Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

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