CRM - Embedded Expectations Analysis - 2019 07 03
Salesforce.com, inc. (CRM:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 47.3x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about customer experience, their exposure to China, and My Trailhead content.Specifically, management may be exaggerating the importance of and opportunities in digital transformation, the significance of customer experience, and their focus on customer success and renewals. Moreover, they may be concerned about world trade, their lack of business in China, and investments into customer success. Also, they may be concerned about the sustainability of the number of learners using My Trailhead, and exaggerating the importance of My Trailhead in reskilling employees, and MuleSoft's leadership in Enterprise Integration Platforms. Furthermore, they may be concerned about the quality of content in My Trailhead and their lack of an HR financial product.
Salesforce.Com is engaged in customer relationship management technology. The company's Customer 360 is an integrated platform that unites sales, service, marketing, commerce, integration, analytics and more to give companies a single, shared view of their customers. Through its platform and other developer tools, the company also enables third parties to develop additional functionality and applications, or apps, that run on its platform, which are sold separately from or in conjunction with the company's service offerings. The company's cloud service offerings include sales cloud, service cloud, marketing and commerce cloud, and salesforce platform and other.
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