5 Investors Betting Big on CRM Stock Amidst Salesforce Layoffs

  • Despite Salesforce (CRM) layoffs, CRM stock is trying for a third-straight week of gains.
  • The move comes after CRM stock recently made a 52-week low and as layoffs may cost the firm $1.4 billion to $2.1 billion.
  • Amid the news, the company still has many large shareholders present in the form of investment firms and mutual funds.
CRM stock - 5 Investors Betting Big on CRM Stock Amidst Salesforce Layoffs

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Salesforce (NYSE:CRM) has not been trading all that well, but by now, that shouldn’t be a surprise. However, CRM stock did catch a nice boost to start the year. A bulk of those gains came on Wednesday, when shares rallied 3.5% after a headline hit about Salesforce layoffs.

Despite the stock’s near-3% decline on Thursday, CRM stock is still up 4.6% so far this week. Further, while the S&P 500 has currently fallen in four straight weeks, Salesforce shares are trying to rally for the third straight week.

That said, it hasn’t been a walk in the park. Shares have collapsed from the high, suffering a peak-to-trough decline of 59.5% and still down more than 55% from the all-time high. Oh yeah, and that three-week winning streak? Well, even if it comes to fruition, that’s a three-week run off the 52-week low.

So again, things haven’t been going great for the stock and clearly not for the business, either. The Salesforce layoffs speak to some of those issues. The company is slashing about 10% of its staff and it will cost the firm between $1.4 billion and $2.1 billion. Management hopes it will allow the company to better maneuver the current downtrend.

Amazon (NASDAQ:AMZN) is also out with a larger-than-expected round of layoffs, as issues continue to plague the tech space.

These Are the 5 Biggest Shareholders of CRM Stock

In mid-2022, Co-CEO Marc Benioff said the company wasn’t feeling the squeeze despite the broader economy being pressured. That tone has obviously changed over the last several quarter.

I have noted in the past the $115 area was a level of interest for buyers. At that level, shares would trade at 23 times 2023’s earnings estimates. But even near current prices, we’re talking about just 27 times earnings.

That likely has long-term investors looking at the potential reward of owning CRM stock near current levels. That’s despite the Salesforce layoffs and despite the fact that shares may go lower from here. Plus, to be a big investor in a single stock, it takes time to build out a position.

As for the largest shareholders, according to Fintel, they look like this:

  1. Vanguard, which owns more than 80.4 million shares of CRM stock worth about $11.57 billion.
  2. BlackRock (NYSE:BLK), which has a stake of more than $10 million. $9.89 billion of that is held in common stock, with an additional position in options.
  3. State Street (NYSE:STT), with a $6.44 billion stake.
  4. Fidelity Investments (FMR), with a $6.19 billion stake.
  5. T Rowe Price Associates (NASDAQ:TROW), with a $4.37 billion stake.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2023/01/5-investors-betting-big-on-crm-stock-amidst-salesforce-layoffs/.

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