Salesforce.com Update: Increasing Competition Weighs on Stock
Salesforce.com’s (NASDAQ:CRM) stock has been swinging wildly the last two weeks and has shed around 5% of its value, primarily because of increased competition in on-demand enterprise space with the entry of giants like Oracle (NASDAQ:ORCL), SAP (NYSE:SAP) and Microsoft (NASDAQ:MSFT). There have been some significant developments related to Salesforce.com, which could impact its stock price going forward.
Check out our complete analysis for Salesforce.com
Salesforce.com continues to expand into the market for cloud-based enterprise software. Last month, it acquired Rypple, a cloud-based social performance management software company. It will relaunch Rypple’s core product as SuccessForce, and enter the human capital management market to compete against SAP which recently acquired SuccessFactors.
SuccessForce will enable companies to improve their performance using a social and collaborative approach, by using various features like badges, skills, goals and game mechanics.
Dell (NASDAQ:DELL) announced that it would be adding Salesforce.com Service Cloud customer service application to its CRM (customer relationship management) suite for small and medium sized businesses, which will help boost sales in the coming quarters. Salesforce.com also announced that its AppExchange enterprise mobile store will host mobile apps for iOS and Android, as well as HTML 5 mobile apps.
Cloud based CRM software accounts for nearly 55% of Salesforce.com’s $121 Trefis price estimate, which stands roughly 20% above its current market price.
[trefis_slideshow ticker=”CRM” rhs=”3″]
Understand How a Company’s Products Impact its Stock Price at Trefis