Salesforce Stock Price

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Prices in the stock market are constantly changing from year to year. If the graphs of stock prices are analyzed, it can be seen that stock prices go through ups and downs throughout the times. However, Salesforce is one of the most successful companies out there, so the Salesforce stock price has increased significantly in the period of one year. What are the reasons behind this success? Let’s find it out.

The available data shows that Salesforce stock price has increased more than forty three percent last year. This rate of increase in stock price is much faster than the other software counterparts, which are about eight percent lower than this amount.

Because of the positive outcome of Salesforce stock price, all investors are looking forward to invest in salesforce stocks. Everyone hopes that this growth will continue in the same rate. Most of the analysis made on stocks is based on revenues and earnings, but the elements of Salesforce’s stock success are different. Many other minor factors play part in the growth of the stock price of Salesforce.

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The Reasons Why Salesforce’s Stock Price Increases Rapidly

Oftentimes, Salesforce gets compared to main players in the technology industry such as Microsoft, because it is also a computing and customer managing company. The market cap of major companies like Microsoft and Oracle are much higher: 735 billion Dollars for Microsoft, 211 billion Dollars for Oracle, and 89 billion Dollars for Salesforce.

However, the amount of market cap Salesforce has is purely from the software sales, which also makes Salesforce stock price rise. Microsoft and Oracle do not purely get their market cap from software sales because they also provide consulting services and produce hardware.

With the development of companies and emergence of new ones, investors have to keep in mind that the companies they choose to invest in have to be able to maintain their customers’ loyalty. A company with millions of dissatisfied customers is much worse than small ones with happy customers. However, investors who follow Salesforce stock price don’t need to worry because Salesforce excels in this matter.

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Most customers who get services from Salesforce choose to renew their subscription. This means nearly all customers are satisfied with Salesforce’s services, which is a good thing. Salesforce has succeeded in maintaining about ninety one percent of their customers. Another successful company, Costco, is also one of the examples of companies with high customer retention rate. A high retention rate will result in the increase of Salesforce stock price.

Salesforce also provides a comfortable and friendly working environment for their employees. The comfort of employees will make them give their best services to customers without feeling forced or unhappy with their work. All elements in the working environment of Salesforce, including communication, pride, and rewards are deemed satisfying by employees.

The excellent report of Salesforce stock price reveals that in order to become a good company, a company does not have to be the biggest. Making customers satisfied with all the services provided is one of the best ways to get a good report.