shares of Salesforce (CRM 3.28%) It rose on Monday after reports that Elliott Management has invested heavily in the cloud software leader. As of 1:30 p.m. ET, Salesforce shares were up more than 3%.
Elliott bought a multi-billion dollar stake in Salesforce. wall street journal.
“Salesforce is one of the world’s leading software companies, and having followed the company for nearly 20 years, I have a deep respect for Marc Benioff and what he built,” said Jesse Cohn, managing partner at Elliott. I came,” he said. journal“We look forward to working constructively with Salesforce to realize the value of a company worthy of its position.”
With approximately $55 billion in assets under management, Elliott is a powerful and respected force in the activist arena. Known for pressuring management to implement changes that improve the profitability of investee companies.
Salesforce’s stock skyrocketed in the early stages of the pandemic as companies spent heavily on cloud services to support remote workers. In recent months, however, fears of inflation and a potential recession have led companies to hold back on technology investments. Meanwhile, Salesforce’s revenue growth has slowed and its stock price has plunged last year.
In response to these challenges, the software company said it would cut its workforce by 10% and prioritize other initiatives that could help boost operating margins.
Elliot seems to think there is still work to be done. It will be interesting to see what kind of changes activist investors seek in the future.
Joe Tenebruso has no positions in any of the mentioned stocks. The Motley Fool has a position with and recommends Salesforce. The Motley Fool’s U.S. headquarters has a disclosure policy.