Cloud software and services continues to take share in the enterprise IT market, and Salesforce.com (NYSE:CRM)
remains a major player within that trend. Even so, growth is slowing
and the company has yet to make a convincing case that there is all that
much latent margin leverage in the business model. With attractive
top-line growth and a “clean” play on the growth of SaaS/PaaS, I expect
Salesforce.com to remain a relatively popular software stock, but I
likewise expect bears to continue complaining (loudly) about the
valuation, particularly given the weak margin leverage and an underlying
growth rate that may be weaker than it first appears.
Please read the full article here:
http://www.investopedia.com/stock-analysis/052413/salesforcecom-still-growing-and-still-expensive-crm-orcl-mkto-ibm.aspx
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