Personal Finance
CRM

Is Salesforce a Good Buy for 2017?

CRM Chart

Much of the stock market has rallied following the presidential election, but software company salesforce.com (NYSE: CRM) has declined nearly 10%. It's been an up-and-down type of year for shareholders, but 2017 may bring better times.

Data by YCharts .

2016 in review

Salesforce

Image source: Salesforce.

The expansion efforts have kept profitability muted, and that has helped keep a cap on the stock this past year. The company dipped slightly into the red during the last quarter, which has contributed to the most recent decline. However, the company expects 2017 to be a landmark year.

An exciting year ahead?

On the last quarterly call, CEO Marc Benioff was excited to announce that his company expects its first $10 billion revenue during the upcoming year. If it materializes, that would be a 21% increase over what the current year is expected to bring in.

Those figures, should they transpire, would amount to yet another slowdown in annual revenue growth. Double-digit growth is nothing to balk at, though, especially for a company as large as Salesforce.

Chart by author. Data source: Salesforce quarterly earnings reports.

The company will release more details on its outlook during its fourth-quarter call, likely due out in February. But considering the year the stock just had in spite of business growth, the company's acquisitions setting it up for further expansion, and management's outlook, 2017 looks like it will be a good year for Salesforce.

10 stocks we like better than Salesforce.com

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Salesforce.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of Nov. 7, 2016

Nicholas Rossolillo has no position in any stocks mentioned. The Motley Fool recommends Salesforce.com. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CRM

Other Topics

Stocks

Latest Personal Finance Videos

How Student Loan Refinancing Works

Though it may be a great way to lower monthly payments, not everyone understands the student loan refinancing process. NerdWallet explains it. For more, try our refinance calculator: http://bit.ly/nerdwallet-student-loan-refinancing-calculator

Nov 25, 2019

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More