Has Salesforce.com Stock Peaked?
The long share-price climb of Salesforce.com (NYSE: CRM) has lost some steam this year -- investors are showing some hesitation about buying the stock at its recent astronomical valuations. The stock did reach a new all-time high of more than $167.56 earlier in 2019, but lately, it has been hovering closer to $152.
Given the resistance that the stock has run into lately, are investors seeing signs that the customer relationship management software company has reached a peak and could be headed further down? Let's take a closer look and see whether or not that might be the case.
The biggest reason not to buy Salesforce today is the significant premium you'd have to pay. The software-as-a-service stock is trading at a price-to-earnings ratio of more than 120, far above what investors would typically expect to pay for a growth stock. Even Amazon.com (NASDAQ: AMZN), which trades at more than $1,800 a share, has a P/E of just 75.
Source Fool.com
