As the tech industry eagerly waits for Salesforce’s Q2 fiscal 2024 results on August 30th, experts at Citi are setting the stage for what could be a crucial turning point. Despite the anticipation, Citi’s analysis points to some pressing concerns that need attention.
Their bottom-line is inflecting rapidly and bringing down profit-based valuation multiples. I believe $CRM has some ways to go on the rerating. Software margins are inherently high - management is focused on value extraction and cutting back on moonshots/opex