Salesforce (Nasdaq:CRM) will release earnings shortly. Ponder this Bear Case Scenario:
Salesforce aggressively acquires new technology companies. If, as and when it over pays and deploys too much capital returns will suffer badly. You’re only as good as your last deal.
The core platform for Salesforce is hosted by third parties making them hostage to circumstances and events beyond their control.
Many customers refused to place all their data into the cloud. Security concerns prevail. Oracle and others offer hybrids which seem to make the medicine go down a lit bit more easily.
George Gutowski writes from a caveat emptor perspective.