Thursday, November 22, 2012

Investopedia: Still Seeing Good Growth, Weak Margin Leverage

As is so often the case with popular growth stocks that sport rich valuations and purport to shake up an industry, (NYSE:CRM) generates plenty of controversy. While the company continues to generate respectable free cash flow (FCF), skeptics question whether the company can grow enough to support its valuation and start posting real operating leverage. I do believe that software as a service (SaaS) really is a big shift in the enterprise software sector, but I continue to struggle to see how can grow enough to validate its valuation.

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