Why Salesforce Stock Fell on Wednesday Morning
Shares of customer relationship management software giant Salesforce (NYSE: CRM) slumped in early trading Wednesday, losing 1.8% of its share price through 10 a.m. ET.
This morning, investment banker Bernstein downgraded shares of Salesforce from market perform (i.e., neutral) to underperform (sell). The analyst also cut its price target on the software giant by 11%, to $119 a share, implying that shares could tumble a further 18% from today's price, StreetInsider.com reported.
As Bernstein explains, Salesforce has an aggressive target of hitting $50 billion in annual sales by 2026 -- nearly double the revenue it collected last year, according to data from S&P Global Market Intelligence. Salesforce also wants to get its pro forma operating margin up to 25%.
Source Fool.com
