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Here's Why Salesforce.com (CRM) Stock Popped Today

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Shares of Salesforce.com (CRM - Free Report) were up nearly 3.4% in early afternoon trading hours after it was granted a new classification from the Department of Defense that would allow government organizations to use the cloud computing company’s tools with certain types of controlled information.

The new classification gives Salesforce Government Cloud authorization at Impact Level 4, or IL 4 for short. With this IL 4 certification, government agencies and employees are free to use Government Cloud for controlled, unclassified information. This includes personally identifiable and health-related information.

Today’s price movement can probably also be attributed to the continued speculation that Salesforce may be a takeover target for another large tech company. Many investors have suggested that a buyout is needed for Salesforce as its growth has begun to slow.

While there have been no clear links between Salesforce and any potential suitors, Mad Money host Jim Cramer made a compelling argument for Alphabet Inc. (GOOGL - Free Report) to purchase the cloud company earlier this year.

Salesforce has also been rumored to be considering expansion through its own acquisitions, as the company was heavily linked to struggling social media platform Twitter last year.

As for now, any M&A-related news surrounding Salesforce remains speculation, but this company will surely continue to attract attention as the technology sector continues its nice run.

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