Wednesday, March 25, 2009

Retro stock

Tech stock Salesforce.com is so 1999, or 2005, or something other than most of what is kicking around the market these days.

The company, which sells software on demand, or software as a service, has two things going for it (or against it) that are in short supply in this market. It is still growing quickly and its stock is very expensive.

A good analyst at Morgan Stanley downgraded the name this morning citing shrinking average deal size and a tougher pricing environment. Both of those are excellent reasons to downgrade a software stock and the shorts should be all over it for the foreseeable future. . I don't have an edge on the name but he's probably correct.

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