Disruptive Technology

Week 9 – US Bellwether Blast: Salesforce’s Q423 earnings


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
AO World plc NEUTRAL 22/09/21 N/A N/A 61.5p
ASOS plc NEUTRAL 29/09/21 N/A N/A 832p
Auto Trader Group plc NEUTRAL 24/01/22 N/A N/A 571p
Auto1 Group SE NEUTRAL 09/02/22 N/A N/A 704c
Baltic Classifieds Group plc NEUTRAL 09/08/22 N/A N/A 144.4p
boohoo group plc OUTPERFORM 22/09/21 N/A N/A 52.8p
Carvana Co NEUTRAL 09/02/22 N/A N/A 844c
Cazoo Group NEUTRAL 08/09/21 N/A N/A 16519c
Darktrace plc NEUTRAL 11/08/22 N/A N/A 277.0p
Deliveroo plc OUTPERFORM 18/01/22 N/A N/A 87.5p
Delivery Hero OUTPERFORM 18/01/22 N/A N/A 3588c
DoorDash Inc NEUTRAL 18/01/22 N/A N/A 5528c
GB Group plc OUTPERFORM 11/08/22 N/A N/A 332p
HelloFresh SE OUTPERFORM 09/02/22 N/A N/A 1795c
In the Style Group plc NEUTRAL 09/08/22 Outperform 22/09/21 1.4p
Kainos Group plc NEUTRAL 06/09/22 N/A N/A 1311p
Marks Electrical Group plc OUTPERFORM 12/01/23 Neutral 26/07/22 88.0p
Moonpig Group plc NEUTRAL 06/10/21 N/A N/A 126p
musicMagpie plc NEUTRAL 29/09/21 N/A N/A 29.8p
Naked Wines plc NEUTRAL 06/10/21 N/A N/A 100p
On the Beach Group plc OUTPERFORM 09/02/23 Neutral 06/10/21 160p
OnTheMarket plc NEUTRAL 09/08/22 N/A N/A 68.0p
Purplebricks Group plc OUTPERFORM 06/03/23 Neutral 24/01/22 8.1p
Rightmove plc OUTPERFORM 24/01/22 N/A N/A 538p
Sosandar plc OUTPERFORM 26/07/22 N/A N/A 22.8p
Trustpilot Group plc NEUTRAL 06/09/22 N/A N/A 99.0p
Virgin Wines UK plc NEUTRAL 26/07/22 N/A N/A 48.5p


Salesforce (CRM) faces a difficult trade off: revenue versus profit. The Einstein GPT collaboration with OpenAI is a step into generative AI, an innovative addition to the product, and the potential efficiency gains to Sales and Marketing functions are significant. However, CRM CEO Marc Benioff is up against five activist investors who want margin; CRM’s FY23 0.7% net income margin is very low for SaaS. CRM has been dragged into the ‘year of efficiency’, but the activists want more – control and margin expansion.

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Mar 13 2023, 07:00 GMT