Monday, August 22, 2011

Investopedia: Salesforce.com Offers Growth, But At A Price

The markets are in no mood these days for any shortfall in expectations. Couple that with an eye-popping valuation, and Salesforce.com (NYSE:CRM) is performing a high-wire act these days. Although the company's top-line growth seems to be good enough to pacify a twitchy Street, long-term investors may want to take note of the high cost of this software company's growth before paying such a steep entry fee. 

Fiscal Second Quarter Results Answer, and Ask Questions  
Wall Street has been quick to punish tech companies like F5 (Nasdaq:FFIV) or NetApp (Nasdaq:NTAP) on any sign of revenue trouble. Luckily, this was not an issue for Salesforce.com - the company posted 38% annual revenue growth (and 8% sequential growth) and once again topped out the high end of its expectations. Billings were up a like amount, and quite strong relative to the likes of Taleo (Nasdaq:TLEO) and SucessFactors (Nasdaq:SFSF), and the company booked several large-value deals.




To read the full article, click below:
http://stocks.investopedia.com/stock-analysis/2011/Salesforce.com-Offers-Growth-But-At-A-Price-CRM-MSFT-ORCL-GOOG-IBM-TLEO-VMW0822.aspx

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