Why Salesforce Is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, customer relations management software specialist salesforce.com (NYSE: CRM  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at salesforce, and see what CAPS investors are saying about the stock right now.

salesforce facts

   

Headquarters (founded)

San Francisco (1999)

Market Cap

$25.3 billion

Industry

Application software

Trailing-12-Month Revenue

$3.1 billion

Management

Co-Founder/Chairman/CEO Marc Benioff

CFO Graham Smith

Return on Capital (average, past 3 years)

(2.9%)

Cash/Debt

$867.6 million / $647.9 million

Competitors

Microsoft 

Oracle 

SAP 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 49% of the 1,857 members who have rated salesforce believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, jacobydavidf, succinctly summed up the salesforce bear case for our community:

Expenses are consistently growing faster than revenue and the Company has not made any money for multiple years. R&D is [skyrocketing ]to keep the pace of innovation about that of the company's numerous strong competitors (IBM, Microsoft). Who knows maybe Amazon.com or Google will jump into the space too, they love doing everything.

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