Salesforce CEO Marc Benioff outlines his plan to turn around his struggling stock
Salesforce CEO Marc Benioff has announced a strategy to address the company's stock underperformance by focusing on customer success and share buybacks. Despite concerns about competition from generative AI platforms, Benioff emphasized the company's strong revenue and record transactions. He believes that AI will enhance Salesforce's offerings, particularly through integrations like Slack with Anthropic-powered tools.
- ▪Salesforce has repurchased $27.1 billion worth of stock to support its share price.
- ▪The company's diluted share count was reduced by 10% year over year due to buybacks.
- ▪Benioff claims that AI will strengthen Salesforce rather than disrupt it.
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Salesforce CEO Marc Benioff laid out his strategy for navigating a period of sharp stock underperformance: focus on delivering a strong product for customers and keep buying back shares."We're going to keep focusing on our customer success," Benioff said on "Mad Money" on Wednesday. "We're going to continue to drive our revenue, we're going to continue to deliver tremendous cash flow."Shares of Salesforce have struggled this year amid growing concerns that generative AI platforms from companies like Anthropic and OpenAI could disrupt traditional software providers. The stock slipped another 1.5% in extended trading Wednesday despite better-than-expected earnings, as investors focused on softer-than-expected guidance.
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