Salesforce (CRM) Stock CRASHES - Time To Buy The DIP?

TL;DR

Salesforce stock is down over 10% after reporting Q3 earnings, raising questions about its investment potential.

Transcript

Salesforce stock is down over 10 percent after reporting Q3 earnings yesterday after the bell and it's sitting just above a 52-week low is this a good time to start an investment or dollar cost average into salesforce.com talk about that and more on today's show what is going on investors hopefully you guys are doing well out there time to talk abo... Read More

Key Insights

• ❓ Salesforce's stock is down over 10% after reporting Q3 earnings, highlighting concerns about future revenue growth.
• 😘 The company's Q4 revenue outlook is around $8 billion but is considered towards the lower end of estimates.
• 🥺 Co-CEO Brett Taylor's departure is unexpected and may lead to continued acquisitions and shared dilution.
• 👨‍🔬 Salesforce's operating expenses, including research and development, marketing, and administrative costs, consume a significant portion of its gross profit.
• 💦 The company's valuation, even after the recent drop in stock price, is still considered high.
• 🍉 Salesforce has been in a long-term uptrend, but there may be better investment options in the sector with larger buybacks and dividend payments.
• 🥺 The company's cash flow and operating profits have not been impressive, leading to concerns about its ability to generate substantial returns for shareholders.

Questions & Answers

Q: Why did Salesforce's stock drop over 10% after reporting Q3 earnings?

The stock dropped as investors have concerns about future revenue growth and the company's ability to meet growth expectations.

Q: What were Salesforce's Q3 financial results?

Salesforce reported revenue of $7.84 billion, a 14% growth year-over-year, beating expectations by $10 million. They also beat expectations on non-GAAP EPS.

Q: What is the outlook for Salesforce's Q4 revenue?

Salesforce expects Q4 revenue to be around $8 billion, which is in line with consensus estimates but towards the lower end. Future revenue growth is a question mark.

Q: What impact does Brett Taylor's departure have on Salesforce?

Brett Taylor's departure was unexpected and raises questions about the company's strategy. Analysts believe it may lead to continued aggressive acquisitions and shared dilution.

Summary & Key Takeaways

• Salesforce reported Q3 revenue of $7.84 billion, beating expectations and showing growth of 14% year-over-year.

• The company's Q4 outlook is expected to be around $8 billion, but analysts have concerns about future revenue growth.

• Co-CEO Brett Taylor's unexpected departure has raised questions about the company's strategy and potential for continued aggressive growth.