Top 5 Losers Today

1. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

Shares of Salesforce, Inc. (NYSE:CRM) slid more than three percent this morning after Monness Crespi Hardt downgraded the cloud-based software company from “Buy” to “Neutral.”

Analyst Brian White believes enterprise technology spending is at risk due to a weakening economy. White also thinks Salesforce, Inc. (NYSE:CRM) will go through difficulties in the coming quarters.

Separately, investment management firm ClearBridge Investments also talked about Salesforce, Inc. (NYSE:CRM) in its third quarter 2022 investor letter, stating:

“Software has been a solid long-term performer for the Strategy and a key point of differentiation versus the benchmark. But even recurring revenue businesses enabling digital transformation are not immune from the vagaries of the COVID-19 recovery. Salesforce, Inc. (NYSE:CRM) (-12.8%) has detracted from results due to slowing revenue growth driven by a combination of factors, including pull-forward of enterprise digitization demand during COVID-19, some operational missteps, and lengthening sales cycles.

We believe the company still has ample room for revenue growth across its various platforms and should benefit from budget consolidation as customers seek control over tech spending in a weakening economy. We also see significant room for margin expansion. While we have trimmed our Salesforce (CRM) exposure, we maintain confidence that the stock will rerate to a level that reflects its growth potential.”

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