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?
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.
MSFT may be increasing dividend by 10%
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....
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.
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.
Look at market cap, CRM needs to double by growing ~70B in value from where it is. MSFT needs to grow ~550B
I don't understand, can you explain? Also, do you believe CRM will double in two years?
Growing CRM by 70B will be hard. Obviously MS growing by 550B is impossible. That being said Microsoft is not a one trick pony
Please see over last 5 yrs and I will pick Salesforce. I know I work here but I worked in microsoft too
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.