Salesforce churns out $50 billion rally even as challenges mount
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Billionaire Marc Benioff’s expansionist philosophy for Salesforce.com is winning over customers and investors even as the software maker faces growing challenges from emerging competitors and its own heavy spending.
Salesforce was a bright spot in a technology earnings season marred by disappointments and a market sell-off that dealt blows to many other high-momentum stocks. While Salesforce wasn’t immune to the rout, a rosy forecast helped prop up the shares and reassured skittish investors that the company’s double-digit growth will continue.
Salesforce shares have roughly doubled since the start of 2017 as investors rewarded the company for steady expansion aided by a stream of acquisitions. That’s created more than $50 billion in market value and won fans on Wall Street. All but four of the 42 analysts tracked by Bloomberg recommend buying the shares. But as the company gets bigger and rivals consolidate, it may get less of a pass for its underwhelming profit margins.
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