Is Salesforce Stock a Buy Now?
Salesforce's (NYSE: CRM) stock rose 4% on Oct. 18 after the activist hedge fund Starboard Value said it had taken a stake in the cloud-based software company. In a CNBC interview, Starboard's founder Jeff Smith said that while Salesforce's software was essential to many industries, its stock was still undervalued due to a "subpar mix of growth and profitability." Smith said Starboard had accumulated a significant stake in Salesforce, but didn't disclose the exact value of its position.
Does Starboard's growing interest in Salesforce indicate it's finally time to buy its beaten-down stock, which has lost nearly 50% of its value over the past 12 months? Let's review Salesforce's main challenges and Starboard's possible demands for the company, and see if its stock can bounce back in the future.
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Source Fool.com
