Salesforce Shares Surge 25%. What Happened?

August 27, 2020

Rightly regarded as the “King of Cloud”, Salesforce.com Inc (NASDAQ: CRM) blew past earnings estimates with shares surging to finish the day up 26% – an all-time high. 

More importantly the company raised its full-year guidance amid the pandemic, targeting US$20.8 billion in revenue for the full fiscal year.

As the poster child for the “cloud subscription” business model, I’m a huge fan of what Marc Benioff has pulled off at Salesforce. 

Now the leading, dominant company in the CRM space worldwide, Salesforce’s suite of products have become a “must-have” for many sales and marketing teams.

I always like to buy the long-term winners in each market segment and Salesforce is without a doubt the leader in its space.

This material is categorised as non-independent for the purposes of CGS-CIMB Securities (Singapore) Pte. Ltd. and its affiliates (collectively “CGS-CIMB”) and therefore does not provide an impartial or objective assessment of the subject matter and does not constitute independent research. Consequently, this material has not been prepared in accordance with legal requirements designed to promote the independence of research. Therefore, this material is considered a marketing communication.

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Tim Phillips

Tim, based in Singapore but from Hong Kong, caught the investing bug as a teenager and is a passionate advocate of responsible long-term investing as a great way to build wealth.

He has worked in various content roles at Schroders and the Motley Fool, with a focus on Asian stocks, but believes in buying great businesses – wherever they may be. He is also a certified SGX Academy Trainer.

In his spare time, Tim enjoys running after his two young sons, playing football and practicing yoga.

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