Salesforce vs Microsoft stock

Microsoft / Eng
userg

Microsoft Eng

PRE
Amazon, Salesforce, Zenefits
BIO
Software Engineer
usergmore
Sep 13, 2017 12 Comments

Both Salesforce and Microsoft stocks have similar stock price trend in the past 5 years (ie both increasing 2.4 times in the same period). Having said that do you see MSFT doubling in next 2.5 years similar to CRM predictions?

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TOP 12 Comments
  • Oracle / Eng ClouDev
    You forgot a few crucial things:

    1. CRM EPS < 0 (always have been), MSFT EPS >0.
    2. CRM P/E is 74 vs. MSFT at 24 and ORCL at 18.
    3. MSFT has similar performance + DIVIDENDS.
    4. Cloud infra (or Azure) adoption is accelerating (while CRM has no presence in that vertical); major growth engine (see AWS).


    MSFT is a no brainer here.
    Sep 13, 2017 0
  • YP XWGi68
    And maybe it's an obvious question, but why not split 1/2 the investment in CRM and other 1/2 in MSFT? There's no specific reason not to hedge your bets. If ok be appreciates 20% and the other 22%, it's not a meaningful difference, both are great companies by all accounts, and target fairly different customer segments. Seems like good diversification....
    Sep 13, 2017 2
    • Oracle / Eng ClouDev
      That's a good suggestion.

      However, quick comment, diversification is best utilized when using multiple industries. For example, putting 50% in MSFT and 50% MCD.

      Or at least, different verticals: 50% MSFT & 50% Square.
      Sep 13, 2017
    • YP XWGi68
      Totally agree. Personally, I diversify my portfolio across real estate, stock positions across different tech sectors, emerging markets, some traditional index tracking funds, and company awarded options.
      Sep 13, 2017
  • New / Other
    MachoMan

    New Other

    PRE
    Microsoft
    BIO
    Security guy
    MachoManmore
    microsoft has a more diverse portfolio and kicking ass in cloud growth. between the 2 i would bet higher on growth of microsoft. having said that stock prices based on some complex factors, least of which is how wall st analysts set expectations about your company.
    Sep 13, 2017 0
  • Salesforce Tvppl
    Look at market cap, CRM needs to double by growing ~70B in value from where it is. MSFT needs to grow ~550B
    Sep 14, 2017 4
    • Microsoft / Eng
      userg

      Microsoft Eng

      PRE
      Amazon, Salesforce, Zenefits
      BIO
      Software Engineer
      usergmore
      OP
      I don't understand, can you explain? Also, do you believe CRM will double in two years?
      Sep 14, 2017
    • Microsoft / Eng fucov
      Growing CRM by 70B will be hard. Obviously MS growing by 550B is impossible. That being said Microsoft is not a one trick pony
      Sep 18, 2017
    • Salesforce Tvppl
      Thanks fucov
      Sep 22, 2017
    • Oracle / Eng ClouDev
      Okay, by that logic SNAP is a better investment than FB. Clearly not accurate.

      Or blue apron vs. Albertsons.

      CRM must execute to catch its PE and not the other way around.
      Sep 22, 2017
  • Salesforce nicejob
    Please see over last 5 yrs and I will pick Salesforce. I know I work here but I worked in microsoft too
    Sep 22, 2017 0
  • Microsoft hrtN12
    MSFT may be increasing dividend by 10%
    Sep 13, 2017 0