IMO, I think our stock is overpriced and doesn’t really map with what customers pay for our products. Most of the revenue numbers people see is fueled by recent tax cuts and acquisitions. If you are looking at making a quick buck, you probably can buy. If you care about the products behind the stock, then don’t.
That's true for most companies, the stickyfactor or more walletshare you have of your customers the harder it is for them to leave. Crossselling your customers is a great way to increase revenue and easier than getting a new customer as they have already seen the benefits
While I agree it’s a great stock, a smart diversification strategy would generally have you sell your shares as soon as they are taxed as long term cap gains if not sooner.
1) if you max out ESPP you’ll always have 20k cost basis on CRM, 40k if you can wait a year to sell.
2) some of your other investments are probably exposed to CRM, like any tech based ETF or mutual.
3) your *job* is with the company, so your future is already subject to CRM risk even if you don’t own any shares.
4) there are tons of other tech stocks to pick from that offer the same sort of risk.
Unless you can carry $40k + RSUs in a single stock and still be reasonably diversified, you should probably sell some. I know things worked out for everyone here and at FAANG who kept all their eggs in one basket, but that doesn’t make it smart. Read up on Enron, global crossing, quest etc if you haven’t already.
You can profit greatly from CRM shares without being proportionally overexposed.