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When the news broke that a big tech name was considering a purchase of the customer relationship management company, CRM stock soared 11.6% on the day.
It has retreated a bit, but CRM stock is still trading above $70. It's up about 23% on the year.
So where does it go from here – is it a good time to buy CRM stock?
Here's what investors need to know about investing in Salesforce stock today…
Is It Time to Buy CRM Stock?
There are a lot of reasons investors like Salesforce…
Salesforce is an impressive company. It was a first mover in cloud computing well before the rest of the tech industry even had a name for "cloud."
And not just that – it has been instrumental in expanding the way tech looks at cloud. The big tech players are still fighting over who can control the virtual data center infrastructure component of cloud, while Salesforce has been looking at cloud as a way to deliver much more sophisticated enterprise services over the platform.
CEO Marc Benioff may not be looking to make commercial spacecraft mainstream or replace the automotive industry with electric cars like Elon Musk, but he too has the extraordinarily ambitious goal of trying to replace all software with cloud services. He's dubbed this initiative the "End of Software."
Right now, CRM is a growth stock with a lot of momentum, and it has takeover value. The company continues to grow sales on a quarterly basis and is even managing to squeeze out profits despite high overhead and marketing costs.
All this has given investors a good case to buy the ride up, and CRM stock still seems to have some room to run.