FT News Briefing Salesforce catches a break
Mar 2, 2023
Salesforce surprised investors with strong earnings, leading to a stock boost amidst activist scrutiny. The company is shifting focus from growth to profitability, including layoffs and spending cuts, while adapting to market pressures and AI advancements. Meanwhile, Chinese factories are actively engaging in overseas trade efforts to revive international commerce, navigating complex geopolitical landscapes and evolving supply chain dynamics.
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Salesforce Under Pressure
- Salesforce faces pressure from activist investors due to declining stock price and slowing growth.
- This marks a shift from the company's historical focus on growth.
Salesforce Shifts Focus to Profit
- Salesforce is shifting from a growth-oriented strategy to a profit-focused one.
- This is evident in their recent layoffs and emphasis on increased operating margins.
Activist Investor Strategy
- Activist investors bought into Salesforce after the stock price dropped significantly.
- Despite recent gains, these investors aim for deeper changes than just a stock price increase.