Salesforce surges 26% on a record quarter — meet the new member of Club Dow
Always be closing... The company that powers sales teams around the world just notched killer quarterly sales itself (#meta). Enterprise cloud software-maker Salesforce had a great week. On Monday, we found out Salesforce is joining the Dow (and oily Exxon got booted). The elite-ish index tracks the stocks of 30 of America's largest companies.
- Salesforce stock ticked up, since fund managers who track the Dow will have to buy Salesforce shares to match the index. Then, on Wednesday...
- Salesforce stock soared 26% on word that quarterly sales jumped 29% to over $5B for the 1st time. Salesforce added over $60B to its market value in just one day.
WTF is "CRM"... It's Salesforce's stock ticker, and also its bread-and-butter: Customer Relationship Management. CRM apps help salespeople track their interactions with leads and prospects. That way, Tony won't forget to follow up on the Knicks tickets he sent to his hot lead. Cindy can show her manager that she called/emailed/Linkedin'd FP&A Bob 135 times. Reps who take over an account or join a deal cycle can see all the info from past interactions.
It's all about the Total Addressable Market... That's Salesforce's total sales opportunity. If a company a) sells things and/or b) has customers to support, they’re part of Salesforce’s TAM (if they can afford it). Since 2006, Salesforce has acquired dozens of companies to expand its biz and TAM. That broad mix of cloud-based business applications is thriving in the WFH economy.