Cloud-based software company Salesforce.com has decided to acquire big data/visualization software firm Tableau Software for around $15.3 billion, as announced on Monday.
As part of the all-stock deal, Tableau shareholders would receive 1.103 shares of Salesforce, which represents an offer of around $177.88 per share - a 42% premium on Tableau’s Friday closing price.
If the deal goes through, it would mark Salesforce’s largest acquisition till date. In 2018, it bought software maker MuleSoft for $5.9 billion.
The news sent Tableau shares soaring more than +30% Monday. Salesforce shares lost more than -4%.
Salesforce CEO Marc Benioff indicated that he is hopeful about the strong impact resulting from the coming together of the two companies specializing in customer relationship management and data analytics respectively.
According to the companies, the merger should immediately lead to an increase of between $300 million and $400 million in the combined group's sales.
The deal is expected to close in the third quarter, following which Tableau will operate independently.
Last month, Tableau reported quarterly net losses of -2 cents per share on an adjusted basis, on revenue of $282.5 million – compared to analysts’ estimates of a loss of a penny per share on revenue of $287.3 million. Salesforce, on the other hand, reported last Thursday its non-GAAP earnings of 93 cents per share for the three months ending in April, thereby beating the Street consensus expectation of 61 cents.
The news of the deal comes a week after Alphabet Inc.’s Google agreed to buy Looker Data Sciences Inc. for $2.6 billion, in what seems to be Google’s attempts at expanding into cloud-based data management.
The Moving Average Convergence Divergence (MACD) for CRM turned positive on May 06, 2024. Looking at past instances where CRM's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CRM's RSI Oscillator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where CRM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 02, 2024. You may want to consider a long position or call options on CRM as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRM advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
CRM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
CRM moved below its 50-day moving average on April 12, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CRM crossed bearishly below the 50-day moving average on April 15, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CRM entered a downward trend on May 06, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CRM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.916) is normal, around the industry mean (30.031). P/E Ratio (71.967) is within average values for comparable stocks, (155.935). Projected Growth (PEG Ratio) (1.620) is also within normal values, averaging (2.725). Dividend Yield (0.001) settles around the average of (0.081) among similar stocks. P/S Ratio (8.532) is also within normal values, averaging (55.589).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of on-demand customer relationship management software technology
Industry PackagedSoftware