Salesforce Predicts Higher Profits, but Loses Another co-CEO -- Is It Time to Sell the Stock?
Investors decided to focus on the negative during Salesforce's (NYSE: CRM) third-quarter update: Co-CEO Bret Taylor is stepping down effective Jan. 31. Co-founder and co-CEO Marc Benioff will once again be the sole head of the enterprise software giant.
This announcement overshadowed Salesforce's concurrent news that profits will be higher than previously forecast as the company finds ways to unlock efficiencies in the midst of an economic slowdown. But with Taylor deciding to exit, who was seen as a successor to Benioff, should investors move on and sell the struggling Salesforce stock?
To answer this question, let's first consider the Q3 fiscal 2023 quarterly update (the three months ended in October 2022). Salesforce's results were quite good, with revenue increasing 14% year over year to $7.84 billion (versus management's predicted $7.83 billion). For Q4, revenue is expected to increase 8% to 10% year over year, not bad considering many businesses are delaying their spending on tech these days as a sharp economic slowdown looms headed into calendar year 2023.
Source Fool.com
