CRM Stock - Salesforce Stock Analysis | Summary and Q&A

TL;DR

Salesforce is a cloud-based platform that streamlines sales, services, marketing, and commerce. The company is increasing revenue through mergers and acquisitions, including the recent acquisition of Slack.

Key Insights

• 🌥️ Subscriptions and support are the primary drivers of Salesforce's revenue, with sales and services clouds being the largest segments.
• 💗 Salesforce's revenue has consistently grown, with analysts projecting over $25 billion in revenue for 2022.
• ❓ Mergers and acquisitions, such as MuleSoft, Tableau Software, and Slack, have contributed to Salesforce's revenue growth and expanded its capabilities.
• 😵 The acquisition of Slack provides cross-selling opportunities and expands Salesforce's customer base.
• ✋ Salesforce's stock valuation is challenging due to its high growth nature, with various valuation methods suggesting it may be overvalued at its current price.

Transcript

hi i'm jimmy in this video we're looking at salesforce.com stock ticker symbol crm the goal this video is to look at the basics of salesforce's business see if we can come up the fair value for salesforce's stock and then well in the middle there we're going to look at some of the news that or some of the things that salesforce has done to help inc... Read More

Questions & Answers

Q: What are the primary segments of Salesforce's business?

Salesforce divides its business into subscriptions and support, with the sales cloud and services cloud being the largest components.

Q: How has Salesforce's revenue growth been in recent years?

Salesforce has shown strong revenue growth, with analysts predicting over $25 billion in revenue for 2022.

Q: What are some notable mergers and acquisitions by Salesforce?

Salesforce has made significant acquisitions, including MuleSoft, which connects apps and data sources, Tableau Software, specializing in data analytics, and Slack, an acquisition aimed at simplifying communication and expanding customer base.

Q: How do analysts value Salesforce stock?

Valuing Salesforce stock is challenging due to its high growth nature. Various valuation methods, such as discounted cash flow, forward P/E ratio, and comparing it to competitors, suggest the stock may be overvalued at its current price.

Summary & Key Takeaways

• Salesforce's primary segments are subscriptions and support, with their sales cloud and services cloud being the largest parts of their business.

• The company's revenue has shown consistent growth, with analysts predicting over $25 billion in revenue for 2022.

• Salesforce has been expanding its business and revenue through strategic mergers and acquisitions, including MuleSoft, Tableau Software, and Slack.