Salesforce’s Stock Has the Jitters With Big Tech Taking on the Cloud

The last couple of weeks have been quite jittery for Salesforce.com (NASDAQ:CRM) stock in light of business and competitive concerns, offset by strong growth in its core business. We currently have a $124 Trefis price estimate for Salesforce.com, which is about in line with its current stock price. Salesforce.com is a leader in the cloud CRM (customer relationship management) software market, which is now attracting quite a few enterprise software heavyweights like Oracle (NASDAQ:ORCL), SAP (NYSE:SAP) and Microsoft (NASDAQ:MSFT).

While there has hardly been much activity in Salesforce.com on the business end, October saw a series of huge announcements from its competitors, which could have significant impact on its stock price in the coming years.

Check out our complete analysis for Salesforce.com

Oracle, which ridiculed the notion of cloud computing in the past, recently embraced the cloud with the announcement of the Oracle Public Cloud at the Open World conference earlier this month. This week, it acquired RightNow, a leading cloud based customer service provider, which will lead to increased competition in Salesforce.com’s primary market.

Even SAP and Microsoft are launching cloud based versions of their enterprise software offerings, which means rapidly increasing competition in the cloud computing market, which is expected to be worth $150 billion by the end of 2014.

Despite the increased competition, we expect Salesforce.com to increase its share in the CRM market to increase to 20% by the end of the forecasting period, backed by its robust offering and continued innovation. However, Oracle, SAP and Microsoft may challenge this growth and wrestle some market share from Salesforce.com in this rapidly growing market.

Tweak the chart above to see how a change in Salesforce.com’s market share in the CRM market could affect its stock price.

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