Billionaire Investors Are Trying To Turn Around These Two Stocks. Should You Buy?
When billionaire investors make moves, retail investors tend to take notice. After all, these investors have had great success in the past, implying that they might have some solid investing insight. So it was notable that activist billionaire investors pounced on two high-profile tech stocks in recent months: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Salesforce (NYSE: CRM).
Christopher Hohn of TCI Fund Management has been browbeating Alphabet since November, urging the tech giant to aggressively cut costs. When the company finally said it was laying off 12,000 employees earlier in January, Hohm responded by saying the tech giant didn't go far enough, urging it cut another 25,000 people from its payroll, reel in share-based and executive compensation, and cut salaries, claiming Alphabet pays its average employee $300,000 a year plus benefits.
Meanwhile, Salesforce's recent woes have attracted attention from more than one activist investor. Starboard Value revealed a stake back in October, arguing that Salesforce has the potential to improve its growth or margins in line with its peers, if not do both. Starboard Value has also held talks with Salesforce management.
Source Fool.com
