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Salesforce (CRM) Is Looking Like a Buy After An Earnings Sell-Off

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Salesforce (CRM - Free Report) blew out both top and bottom-line estimates, but investors were concerned about the $27.7B acquisition of Slack (WORK - Free Report) . CEO Marc Benioff promised no M&A activity for the remainder of 2020, and this move came as a surprise to investors.

CRM shares dipped over 9% in morning trading.

This acquisition would represent the largest in its history, but analysts don’t like the fundamentals. Slack should have been a pandemic winner, but its growth figures have been unimpressive.

Benioff is confident that his enterprise’s institutional partnerships and digital expertise will bring this Slack to its full potential.

Don’t bet against Benioff is what I’ve learned with its slew of excellent acquisitions, including the $15.3B Tableau deal last year, which was met with initial skepticism but was ultimately a success. 

I think CRM is a buy following the earnings sell-off, and I will average down on CRM shares if it continues to fall.

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