The Big Problem With Salesforce
Investors love a good growth stock. But that doesn't mean that sales growth alone is going to be enough for a stock to continue rising in value. Case in point: salesforce.com (NYSE: CRM). The customer relationship management platform developer is coming off a quarter in which it beat expectations for both earnings and sales, and yet that wasn't enough to give the stock a boost. Here's why investors may be expecting a lot more from the company and why it may not be that great of a buy today.
Salesforce has made as many as 60 acquisitions over the years, six of which occurred in 2019. In August, the company completed the purchase of Tableau for $15.7 billion, its largest acquisition to date. The move is a good one: Bringing in Tableau's analytics platform under Salesforce will help complement the company's existing capabilities.
Salesforce Co-CEO Keith Block stated in the press release, "Tableau will make Salesforce Customer 360, including Salesforce's analytics capabilities, stronger than ever, enabling our customers to accelerate innovation and make smarter decisions across every part of their business."
Source Fool.com
