Shake-Up Alert: 40 Companies Facing Activist Pressure

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1. ValueAct Capital at Salesforce Inc (NYSE:CRM)

Stock Return: 40.94%

S&P 500 Return: 94.4%

Investment date: 31/12/2022

Number of hedge funds holding stakes: 154

Salesforce Inc (NYSE:CRM) is a technology company that provides customer relation management technology for connecting companies and customers. The company has been the subject of intense activist campaigns over the past year as investors remained disgruntled with CEO Benioff’s high acquisition habit and underperforming stock.

ValueAct Capital is one of the hedge funds that have been putting pressure on the board to the extent of securing a seat. The activist investor has overseen the deep layoff and dissolution of the board-level M&A committee. Salesforce Inc (NYSE:CRM) is up by about 1% for the year. As of Q1 2024, 154 hedge funds tracked by Insider Monkey held stakes in the company, up from 131 as of the end of 2023.

Tracking the moves that activist investors make in the market is one of the best ways of uncovering high-risk, high-reward opportunities trading at discounted valuations. However, given that the artificial intelligence arms race is just but starting under-the-radar AI stocks that are trading at highly discounted valuations hold greater promise for anyone looking for superior returns. If you are looking for an AI stock that is more promising than NVDA and that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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