4 Red Flags for Salesforce's Future
Salesforce (NYSE: CRM) is often considered a resilient blue-chip tech stock. It owns the largest cloud-based customer relationship management (CRM) platform in the world, and it leverages that dominance to cross-sell additional cloud services for adjacent markets.
Salesforce believes it can nearly double its annual revenue to $50 billion by fiscal 2026, which ends in January of that year. That rosy forecast implies its annual revenue will rise at a compound annual growth rate of 17.3% between fiscal 2022 and 2026 -- which is an impressive growth rate for a stock that trades at just seven times this year's sales.
I personally own shares of Salesforce, and I believe this cloud king still has a bright future. However, investors should be aware of the challenges that could throttle its near-term growth. So today, I'll take a closer look at four red flags for Salesforce -- and what they might mean for the company.
Source Fool.com
