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If You Invested $1000 in Salesforce.com a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Salesforce.com (CRM - Free Report) ten years ago? It may not have been easy to hold on to CRM for all that time, but if you did, how much would your investment be worth today?
Salesforce.com's Business In-Depth
With that in mind, let's take a look at Salesforce.com's main business drivers.
Headquartered in San Francisco, Salesforce, Inc., founded in 1999, is the leading provider of on-demand Customer Relationship Management (CRM - Free Report) software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development.
Salesforce is currently the largest CRM vendor in the world with a market share of nearly 20% according to reports of Gartner, a global research and advisory firm. Its nearest rival, SAP is way behind at a market share of around 8%. About 90% of the Fortune 100 companies uses at least one Salesforce software.
The company has leveraged its expertise in on-demand software to increase the scale of operations. It also offers a technology platform for customers and developers to build and run business applications.
Salesforce helps companies of every size and industry to connect with their customers in new ways through existing and emerging technologies including cloud, mobile, social, IoT and artificial intelligence (AI).
Rapid digital transformation and the company’s sustained focus on introducing more aligned products as per customer needs is driving its revenues higher. Over the last eight years, Salesforce’s annual revenues have sextuple from $5.4 billion in fiscal 2015 to $31.4 billion in fiscal 2023.
There are two main revenue streams — Subscription and Support and Professional Services & Other.
Subscription revenues comprise subscription fees from customers, accessing the company’s enterprise cloud computing services (Cloud Services), software licenses and subscription fees recognized from customers for additional support beyond the standard support lent by the company. This segment accounted for more than 93% of Salesforce’s fiscal 2023 revenues.
Professional Services & Other revenues consist of fees that the company derives from consulting and implementation services and training. This segment accounted for the remaining 7% of Salesforce’s fiscal 2023 revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Salesforce.com ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $4,468.55, or a 346.86% gain, as of April 3, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 161.87% and the price of gold went up 21.56% over the same time frame.
Analysts are anticipating more upside for CRM.
Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product. We expect CRM revenues to grow at a CAGR of 11.2% through fiscal 2024-2026. However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects In the near-term.
The stock has jumped 7.16% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 19 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in Salesforce.com a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Salesforce.com (CRM - Free Report) ten years ago? It may not have been easy to hold on to CRM for all that time, but if you did, how much would your investment be worth today?
Salesforce.com's Business In-Depth
With that in mind, let's take a look at Salesforce.com's main business drivers.
Headquartered in San Francisco, Salesforce, Inc., founded in 1999, is the leading provider of on-demand Customer Relationship Management (CRM - Free Report) software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development.
Salesforce is currently the largest CRM vendor in the world with a market share of nearly 20% according to reports of Gartner, a global research and advisory firm. Its nearest rival, SAP is way behind at a market share of around 8%. About 90% of the Fortune 100 companies uses at least one Salesforce software.
The company has leveraged its expertise in on-demand software to increase the scale of operations. It also offers a technology platform for customers and developers to build and run business applications.
Salesforce helps companies of every size and industry to connect with their customers in new ways through existing and emerging technologies including cloud, mobile, social, IoT and artificial intelligence (AI).
Rapid digital transformation and the company’s sustained focus on introducing more aligned products as per customer needs is driving its revenues higher. Over the last eight years, Salesforce’s annual revenues have sextuple from $5.4 billion in fiscal 2015 to $31.4 billion in fiscal 2023.
There are two main revenue streams — Subscription and Support and Professional Services & Other.
Subscription revenues comprise subscription fees from customers, accessing the company’s enterprise cloud computing services (Cloud Services), software licenses and subscription fees recognized from customers for additional support beyond the standard support lent by the company. This segment accounted for more than 93% of Salesforce’s fiscal 2023 revenues.
Professional Services & Other revenues consist of fees that the company derives from consulting and implementation services and training. This segment accounted for the remaining 7% of Salesforce’s fiscal 2023 revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Salesforce.com ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $4,468.55, or a 346.86% gain, as of April 3, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 161.87% and the price of gold went up 21.56% over the same time frame.
Analysts are anticipating more upside for CRM.
Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product. We expect CRM revenues to grow at a CAGR of 11.2% through fiscal 2024-2026. However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects In the near-term.
The stock has jumped 7.16% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 19 higher, for fiscal 2023; the consensus estimate has moved up as well.