Activist urges Salesforce to lift margins after taking stake
Activist hedge fund Starboard Value has taken a stake in Salesforce and is calling for the cloud software group to increase its margins, arguing that the company has not taken advantage of its position as a market leader.
The $8.4bn New York-based fund, led by Jeff Smith, set out its argument in a presentation published on Tuesday. It attributed Salesforce’s valuation discount relative to its peers to a “subpar mix of growth and profitability”.
“The company’s share price has underperformed its benchmark indices, its closest peers, and the broader market over the last three years,” the hedge fund wrote in a presentation.
This story originally appeared on: Financial Times - Author:Ortenca Aliaj
