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Mar 13 2023, 07:00 GMT
Disruptive Technology
Week 9 – US Bellwether Blast: Salesforce’s Q423 earnings
- Sectors : Disruptive Technology
- Companies : Kainos Group plc | Baltic Classifieds Group plc | In the Style Group plc | musicMagpie plc | Deliveroo plc | DoorDash Inc | OnTheMarket plc | Sosandar plc | Trustpilot Group plc | Auto Trader Group plc | Carvana Co | Cazoo Group | Purplebricks Group plc | Darktrace plc | On the Beach Group plc | Marks Electrical Group plc | AO World plc | Delivery Hero | Virgin Wines UK plc | GB Group plc | ASOS plc | Rightmove plc | boohoo group plc | Moonpig Group plc | Naked Wines plc | HelloFresh SE | Auto1 Group SE
Ratings
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 |
DAVY VIEW
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.
