Monday, May 27, 2013

Investopedia: Salesforce.com Still Growing And Still Expensive

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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