Salesforce Shares Return from the Clouds

High flying cloud computing stock Salesforce.com Inc (NYSE:CRM) posted Q3 numbers that disappointed Wall Street and shareholders.

Though sales rose 36% to $584.3 million, the company registered a loss of $3.76 million (3 cents a share). Analysts estimated sales at $571.4 million and a profit of 32 cents. “For a stock that’s priced to perfection, priced at 30 times cash flow, this is a disappointment,” Brad Zelnick, an analyst at Macquarie Capital USA in New York, said on Bloomberg.

Last quarter, margins were crushed as Salesforce continued to battle for the lead in cloud computing software with extra hiring and acquisitions. Salesforce’s (NYSE:CRM) operating margin, excluding some items, narrowed to 11 percent in the third quarter, down 4 percentage points from a year ago. The company is spending more on sales, marketing, research and data-center capacity, said Chief Financial Officer Graham Smith.

CEO Marc Benioff, however, is optimistic and expects growth to accelerate next year. “It’s not a great indicator of the performance of the company,” Benioff said. “All indications to us are that our business is going great.”

For the fourth quarter, the company expects a profit of 39-40 cents a share with revenue in the $620 million to 624 million range.

Here’s how cloud computing momo stocks are trading now:

  • Salesforce.com (NYSE:CRM): CRM shares recently traded at $114.99, down $11.1, or 8.8%. Its market capitalization is $15.58 billion. They have traded in a 52-week range of $109.22 to $160.12. Volume today was 5,145,754 shares versus a 3-month average volume of 3,093,150 shares. The company’s trailing P/E is 560.93, while trailing earnings are $0.21 per share. About the company: Salesforce.com, Inc. provides software on demand. The Company supplies a customer relationship management service to businesses worldwide providing a technology platform for customers and developers to build and run business applications. Clients use Salesforce.com to manage their customer, sales and operational data. Get the most recent company news and stock data here >>
  • Oracle Corp. (NASDAQ:ORCL): ORCL shares recently traded at $30.42, down $0.4, or 1.3%. Its market capitalization is $153.43 billion. They have traded in a 52-week range of $24.72 to $36.50. Volume today was 10,056,948 shares versus a 3-month average volume of 35,288,100 shares. The company’s trailing P/E is 17.30, while trailing earnings are $1.76 per share. The company pays a dividend of $0.24 per share for a dividend yield of 0.70%. About the company: Oracle Corporation supplies software for enterprise information management. The Company offers databases and relational servers, application development and decision support tools, and enterprise business applications. Oracle’s software runs on network computers, personal digital assistants, set-top devices, PCs, workstations, minicomputers, mainframes, and massively parallel computers. Get the most recent company news and stock data here >>
  • NetSuite Inc. (NYSE:N): N shares recently traded at $40.86, down $0.73, or 1.76%. Its market capitalization is $2.77 billion. They have traded in a 52-week range of $22.02 to $44.53. Volume today was 55,892 shares versus a 3-month average volume of 471,268 shares. The company’s trailing earnings are $-0.47 per share. About the company: NetSuite Inc. provides relationship management software solutions . The Company offers a comprehensive suite of enterprise resource planning, or ERP, customer relationship management, or CRM, and e-commerce solutions. Get the most recent company news and stock data here >>
  • Rackspace Hosting, Inc (NYSE:RAX): RAX shares recently traded at $41.42, down $0.51, or 1.22%. Its market capitalization is $5.43 billion. They have traded in a 52-week range of $26.83 to $46.49. Volume today was 177,484 shares versus a 3-month average volume of 1,625,680 shares. The company’s trailing P/E is 88.13, while trailing earnings are $0.47 per share. About the company: Rackspace Hosting, Inc. delivers websites, web-based IT systems, and provides related services. Get the most recent company news and stock data here >>
  • Cisco Systems, Inc. (NASDAQ:CSCO): CSCO shares recently traded at $18.54, up $0.06, or 0.32%. Its market capitalization is $100.00 billion. They have traded in a 52-week range of $13.30 to $22.34. Volume today was 13,208,927 shares versus a 3-month average volume of 61,234,500 shares. The company’s trailing P/E is 16.01, while trailing earnings are $1.16 per share. The company pays a dividend of $0.24 per share for a dividend yield of 1.30%. About the company: Cisco Systems, Inc. supplies data networking products for the Internet. The Company’s Internet Protocol-based networking solutions are installed at corporations, public institutions and telecommunication companies worldwide. The Company’s solutions transport data, voice, and video within buildings, across campuses, and around the world. Get the most recent company news and stock data here >>

Don’t Miss: Cloud Computing: Your Cheat Sheet to the Cloud Business Landscape.