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☆ Salesforce shares climb as growth forecast, buyback plan appease investors
▼ + stars: | 2023-03-02 | by ( ) www.reuters.com time to read: +2 min

March 2 (Reuters) - Shares of Salesforce Inc (CRM.N) jumped 15% in premarket trade on Thursday after the cloud-based software provider's revenue forecast eased concerns about slowing growth and its move to double its share repurchase to $20 billion appeased investors. Still, Salesforce's first-quarter revenue forecast implied growth of 10%, higher than analysts' estimates of 9%. Other activist investors with a stake in Salesforce include Starboard Value, Inclusive Capital Partners and ValueAct Capital. They have pushed for higher growth and margins, more share buybacks and raised concerns about recent acquisitions. Shares of Salesforce have advanced 26% this year through Wednesday's close, compared with a near 3% gain in the benchmark S&P 500 index (.SPX).

☆ Salesforce's strong results are impressive given activist pressure, Wall Street analysts say
▼ + stars: | 2023-03-02 | by ( Sarah Min | ) www.cnbc.com time to read: +4 min

Salesforce 's strong earnings were impressive, as it works toward improving profitability in the midst of ongoing activist pressure at the firm, according to Wall Street analysts. The results help Salesforce CEO Marc Benioff fend off pressure from activist investors such as Third Point and Elliott Management that have leaned on the firm. The new price target suggests shares can jump 43% from Wednesday's closing price of $167.35. JPMorgan's Mark Murphy also reiterated an overweight rating on the stock, and raised his price target to $230 from $200 — implying about 37% upside. Nevertheless, he maintained a neutral rating on the stock, with a $182 price target implying just 8% upside.

☆ Marc Benioff has yet to satisfy the most powerful activist investor. Elliott Management demands a 'sustainable leadership plan' for Salesforce.
▼ + stars: | 2023-03-02 | by ( Ellen Thomas | Ashley Stewart | ) www.businessinsider.com time to read: +3 min

Salesforce reported strong results, a huge new share buyback plan, and concessions for activist investors. That wasn't enough for Elliott Management, one of the most feared activist hedge funds. Benioff will have to fix Salesforce's succession crisis to appease activist investors. Salesforce reported strong results on Wednesday, announced an extra $10 billion in share buybacks, and scrapped its M&A committee, signalling no more big, pricey acquisitions. Company insiders, former employees and Wall Street analysts increasingly expect Salesforce to put a succession plan in place soon.

☆ Salesforce is having its best day since 2020 after blowout earnings report
▼ + stars: | 2023-03-02 | by ( Jordan Novet | ) www.cnbc.com time to read: +3 min

Salesforce shares surged 12% on Thursday and headed for their biggest single-day rally since August 2020, after the cloud software vendor issued earnings and guidance that trounced analysts' estimates. After the close of regular trading on Wednesday, Salesforce reported fiscal fourth-quarter adjusted earnings of $1.68 per share, 23% higher than the consensus among analysts polled by Refinitiv. Alongside the earnings report, Salesforce said it's working with Bain on a business review, and the company announced the elimination of the board's committee on mergers and acquisitions. Rangan, who recommends buying the stock, raised his 12-month price target for the second time in a week after the report. WATCH: Salesforce earnings highlight how expectation beats can move markets, says Kari Firestone

☆ Marc Benioff says every CEO in Silicon Valley has asked themselves if they 'need to unleash their own Elon'
▼ + stars: | 2023-03-02 | by ( Ashley Stewart | Ellen Thomas | ) www.businessinsider.com time to read: +3 min

Among them is Marc Benioff, who told Insider CEOs are asking "Do they need to unleash their own Elon within them?" "Every CEO in Silicon Valley has looked at what Elon Musk has done and has asked themselves, 'Do they need to unleash their own Elon within them?'" Benioff told Insider during an interview on Thursday. "That is an existential question that if you are any kind of executive in the company," Benioff added. "I had no choice but to step in and to guide the company's performance," Benioff told Insider.

☆ There are growing expectations that Salesforce is readying a succession plan to appease activist investors. 'There's not a lot of people sitting on the bench,' one analyst said.
▼ + stars: | 2023-03-01 | by ( Ellen Thomas | Ashley Stewart | ) www.businessinsider.com time to read: +8 min

Analyst said any succession plan would be about giving investors "comfort" about the future. Company insiders, former employees and Wall Street analysts increasingly expect Salesforce to put a succession plan in place soon. 'If he's willing to work with the activists, then he can stay CEO'Analysts think that if a succession plan is announced soon, it won't include Benioff's immediate exit. "Benioff is Salesforce and Salesforce is Benioff," said Dan Ives, an analyst at Wedbush Securities. Bret Taylor, former Salesforce executive SalesforceTaylor's departure in late November left Salesforce with a limited bench of potential successors.

☆ Salesforce CEO Marc Benioff says that this is a 'New Day' for Salesforce, focusing on profitability above its famous 'Ohana' mantra
▼ + stars: | 2023-03-01 | by ( Paayal Zaveri | ) www.businessinsider.com time to read: +4 min

As Salesforce faces activist investor pressure, profitability is now CEO Marc Benioff's key focus. Benioff is now touting a strategy called "New Day," focused solely on profitability and efficiency. Instead, those execs hammered on that "New Day" strategy, which emphasizes profitability and efficiency over all else. The company's recent layoffs, as well as Benioff's comments that employees haven't been as productive since the start of the pandemic, have weighed on employee morale. Former co-CEO Bret Taylor and other top execs like Slack CEO Stewart Butterfield have also departed Salesforce in recent months.

The nominating window closes March 14, and it is unclear if it is two or three nominees, Faber said on " Squawk on the Street ." The slate will likely include Jesse Cohn who runs the activist practice at Elliott, according to people familiar with the situation, but Faber said his position hasn't been confirmed. Activist investor Elliott Management has nominated a slate of directors for Salesforce 's board, sources told CNBC's David Faber on Wednesday. Elliott Management unveiled its multibillion-dollar investment in Salesforce in January, and the company said ValueAct Capital CEO Mason Morfit will join its board this month. Dan Loeb's hedge fund, Third Point, has also built a position in the company, CNBC confirmed in February.

☆ Salesforce's upbeat revenue forecast, buyback plan boost shares
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +1 min

March 1 (Reuters) - Salesforce Inc (CRM.N) on Wednesday forecast first-quarter revenue above analysts' estimates and increased its share repurchase program to $20 billion, sending shares of the cloud-based software provider up 14% in extended trading. May be this takes some of the wind out of the activists' demands," said Steve Koenig, managing director at SMBC Nikko Securities. The company forecast first-quarter revenue between $8.16 billion and $8.18 billion, compared with analysts' average estimate of $8.06 billion, according to Refinitiv IBES data. Revenue for the fourth quarter ended Jan. 31 was $8.38 billion, above analysts' average expectation of $7.99 billion, according to Refinitiv IBES data. On an adjusted basis, the company earned $1.68 per share, compared with estimates of $1.36 per share.

☆ Salesforce results give CEO Benioff ‘breathing room’ from activists for now, ‘Fast Money’ trader Steve Grasso said
▼ + stars: | 2023-03-01 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

Salesforce 's strong earnings results should give CEO Marc Benioff some relief from ongoing activist pressure at the cloud software firm. "This gives him definitive breathing room right now," Steve Grasso, CEO of Grasso Global, said Wednesday on CNBC's " Fast Money ." Salesforce shares surged 15% in extended trading Wednesday after the cloud software maker beat expectations on the top and bottom lines , and issued a better forecast than Wall Street was expecting. Salesforce in recent months has faced increasing activist pressure from firms such as Elliott Management, Third Point and Starboard Value. To be sure, the strong results may not help Benioff for long, the "Fast Money" traders said.

☆ Benioff more than delivers with Salesforce's fourth-quarter beat and sky-high guidance
▼ + stars: | 2023-03-01 | by ( Zev Fima | ) www.cnbc.com time to read: +6 min

Club holding Salesforce (CRM)'s fiscal fourth-quarter results crushed expectations across the board Wednesday, while its forward guidance made clear CEO Mark Benioff is uniquely positioned to deliver profitability at the enterprise software pioneer. Operating cash flow surged nearly 41% from the previous year, to $2.79 billion, beating estimates of $2.5 billion. Benioff said management is "reigniting [Salesforce's] performance culture" and doubling down on the accountable management of its sales organization, while reducing headcount and consolidating the company's real estate footprint. The company is trying to better integrate acquisitions and prioritizing those "core innovations that are driving customer success," Benioff said. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ As PayPal searches for a successor for its CEO, these 6 high-profile executives could be prime candidates to run the payments giant
▼ + stars: | 2023-03-01 | by ( Paige Hagy | Bianca Chan | ) www.businessinsider.com time to read: +2 min

Payments giant PayPal is in search of a new CEO. On February 9, PayPal's president and CEO, Dan Schulman, announced his plans to retire at the end of the year. The search for the new CEO comes at a critical time for the company, which has been on a cost-cutting crusade. In August 2022, PayPal estimated that savings from cost cutting would reach $1.3 billion in 2023, on the back of 2022 savings to the tune of $900 million. Insider spoke with seven analysts, VCs, and industry insiders to discuss who they think would be prime candidates to succeed Schulman.

☆ Salesforce shares jump 13% on better-than-expected forecast
▼ + stars: | 2023-03-01 | by ( Jordan Novet | ) www.cnbc.com time to read: +3 min

Salesforce shares soared 16% in extended trading on Wednesday after the cloud software maker beat Wall Street estimates on profit and issued a better-than-expected forecast. Here's how the company did:Earnings: $1.68 per share, adjusted, vs. $1.36 per share as expected by analysts, according to Refinitiv. $1.68 per share, adjusted, vs. $1.36 per share as expected by analysts, according to Refinitiv. Revenue: $8.38 billion, vs. $7.99 billion as expected by analysts, according to Refinitiv. Salesforce sees adjusted earnings per share for the full 2024 fiscal year of $7.12 to $7.14 and revenue of $34.5 billion to $34.7 billion.

☆ Don't act on new activist push for board seats at Salesforce before earnings, Benioff reaction
▼ + stars: | 2023-03-01 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +8 min

Hedge fund Elliott Management's decision to nominate candidates for Salesforce 's (CRM) board represents an escalation of the activist agitation at the Club holding. The Club generally believes activists' wishes for cost-cutting at Salesforce are positive, as long as Benioff remains at the helm. It's unclear whether Elliott is nominating two or three candidates for Salesforce's board, according to CNBC's David Faber, who broke the story Wednesday morning . Benioff is chairman of Salesforce's board. However, we don't want the activist pressure at Salesforce to cause Benioff to depart the company.

☆ Cramer sees a 'good chance' Salesforce's Benioff will soon announce succession plans
▼ + stars: | 2023-02-25 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +4 min

Jim Cramer suggested Saturday that plans for a leadership change at Club holding Salesforce (CRM) — helmed by co-founder Marc Benioff for more than two decades — may be disclosed in the near future. CRM YTD mountain Salesforce (CRM) YTD performance In early January, Salesforce announced a cost-cutting plan that included layoffs and office space reductions — moves that Jim has said were pushed for by Starboard . While Benioff has said he's "never leaving" Salesforce , the company has twice elevated an executive to the role of co-CEO. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Marc Benioff, founder, chairman and CEO of enterprise cloud computing company Salesforce.

☆ Nikki Haley heads to fundraiser hosted by Wall Street executives
▼ + stars: | 2023-02-24 | by ( Brian Schwartz | ) www.cnbc.com time to read: +4 min

Nikki Haley, a Republican who jumped into the 2024 presidential race this month, is set to attend a fundraising event for her campaign hosted by Wall Street executives in New York on Tuesday, according to an invitation first reviewed by CNBC. The Tuesday fundraiser for Haley's campaign is one of her first trips to New York as a candidate for president. Morning Consult's GOP primary tracker shows Haley has 6% of support from potential Republican voters. Former President Donald Trump garners support from about 50% of GOP primary voters, according to Morning Consult. Finance executives have played key fundraising roles for political campaigns of both parties for well over a decade.

☆ These highly rated stocks have big economic moats and they are outpacing the market this year
▼ + stars: | 2023-02-24 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The so-called moat has been a popular factor to pick stocks, touted by none other than Warren Buffett, and these names with a wide moat are outperforming the market this year. CNBC Pro used Morningstar to identify wide moat stocks that are beating the market this year. We also screened stocks with a market cap bigger than $500 million and rated 4 or 5 stars by Morningstar. On the top of the list were two big tech stocks — Meta and Salesforce . Automation company Teradyne and tech name Transunion were also wide moat stocks, according to Morningstar.

☆ Starboard Value wants Salesforce to hit over 30% profit margins, closer to Oracle and Microsoft. Salesforce is working on it, leaked draft of a planning document shows.
▼ + stars: | 2023-02-24 | by ( Ellen Thomas | ) www.businessinsider.com time to read: +6 min

Activist investor Starboard Values wants Salesforce to grow its adjusted operating margins above 30%. In September, Salesforce announced a goal of 25% adjusted operating margins by fiscal 2026, up from a target of 20% for fiscal 2023. Starboard found Salesforce's mix of operating margins and revenue growth averaged much lower than its peers, including Microsoft and Oracle. Starboard showed Oracle at a 10.7% increase in revenue with adjusted operating margins of 43.3% for its current fiscal year. It showed Microsoft's at a 10.9% increase in revenue and 46.6% increase in operating margins, Starboard said.

Worldwide boy-band sensation BTS may be on hiatus, but refreshing new financial acts threaten to upend the world of K-pop, and perhaps South Korea. The battle over 28-year-old SM Entertainment, the $2.3 billion force behind Girls' Generation and EXO, is at heart a family feud. It helps, too, that K-pop has turned into one of South Korea’s strongest exports, thanks largely to “Butter” and “Dynamite” singers BTS. "We oppose all aggressive outside mergers and acquisitions, including Hybe," SM said in a statement, according to Reuters. Separately, internet conglomerate Kakao said on Feb. 7 it would acquire a 9.05% stake in SM via 112 billion won of new shares and 105 billion won of convertible bonds.

☆ Who's going to run PayPal? Industry insiders highlighted 6 potential candidates to succeed Dan Schulman at the payments giant.
▼ + stars: | 2023-02-21 | by ( Paige Hagy | Bianca Chan | ) www.businessinsider.com time to read: +2 min

Payments giant PayPal is in search of a new CEO. Insider spoke with seven industry experts for their thoughts on who might be tapped for the role. On February 9, PayPal's president and CEO, Dan Schulman, announced his plans to retire at the end of the year. In August 2022, PayPal estimated that savings from cost cutting would reach $1.3 billion in 2023, on the back of 2022 savings to the tune of $900 million. Insider spoke with seven analysts, VCs, and industry insiders to discuss who they think would be prime candidates to succeed Schulman.

☆ PayPal's CEO search amid an uncertain economy will be no easy task
▼ + stars: | 2023-02-21 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

In case you missed it, PayPal CEO and President Dan Schulman announced his plan to retire at the end of 2023 earlier this month. Coming off an extremely difficult 2022, and with competition seemingly coming at them from every which way, PayPal has to find a new CEO. I hesitate to compare this to the seemingly never-ending CEO search at Carlyle, but it's easy to see how a difficult quarter or two could complicate this entire search. The rich stay rich thanks to another loophole that helps them save on taxes. Elliott Management's Paul Singer and Two Sigma's David Siegel both played second fiddle to Haidar Capital's Said Haidar in 2022 when it came to comp.

☆ Here's how Wall Street pros traded 13 Club stocks last quarter, including Salesforce and Disney
▼ + stars: | 2023-02-17 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +9 min

Big-name investors and hedge funds made moves in Club holdings Disney (DIS), Nvidia (NVDA) and TJX Companies (TJX) in the fourth quarter. Starboard's position stood at 3.03 million shares — valued at $401.22 million — at the end of the fourth quarter, according to the firm's 13F. Inclusive's 1.63 million shares were worth $216.77 million and ValueAct's 560,221 shares carried a market value of $74.28 million. CRM YTD mountain Salesforce (CRM) YTD performance In addition to Salesforce, a number of other Club holdings appeared in hedge funds' quarterly disclosures. Some of the activists swarming at Salesforce have positions in other Club holdings and made changes to them during the fourth quarter.

☆ Salesforce, activist investor Elliott may soon reach deal - sources
▼ + stars: | 2023-02-17 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

Feb 17 (Reuters) - Cloud-based software firm Salesforce Inc (CRM.N) and activist investor Elliott Management Corp are in discussions to reach an agreement that may end a possible board challenge, according to two people familiar with the matter. The battle at Salesforce has pitted Elliott as well as other activist investors against Marc Benioff, one of Silicon Valley's most iconic chief executives. Salesforce's growth has slowed dramatically in recent quarters and last month the company said it would cut 10% of jobs to address its performance. Representatives for Salesforce and Elliott declined to comment. Elliott too has long invested in technology companies and in the past reached settlements for board seats with companies including Pinterest (PINS.N), Twitter and eBay (EBAY.O).

☆ A little-known hedge-fund manager's huge bet on inflation earned him $859 million and propelled him into the top 10 list
▼ + stars: | 2023-02-17 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +3 min

The manager of a little-known hedge fund was the 6th highest paid manager last year, per Bloomberg. Said Haidar made a huge leveraged bet on interest rates rising last year, and took home $859 million. The jump in prices last year means the hedge fund, which had positioned itself to profit from the rises, was able to benefit reap huge returns from its bet. His $859 million total was split between a $645 million gain on personal investment and a $314 million share of fund performance fees. Meanwhile, Elliott Management's Peter Singer brought home $317 million, with his hedge fund managing $56 billion in assets.

☆ Rothschild holdouts have little chance of a bump
▼ + stars: | 2023-02-14 | by ( ) www.reuters.com time to read: +2 min

LONDON, Feb 14 (Reuters Breakingviews) - The dynasty behind famed investment bank Rothschild & Co (ROTH.PA) has sided with France’s business elite to buy out minority investors on the cheap. Any potential holdouts, though, have little hope. If they miss that threshold, the Rothschild family can keep whatever shares they get. That means they could just try the whole thing again next year – but starting from a higher ownership base. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

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