Salesforce.com, Software on demand darling and on the come beneficiary of the cloud computing bonanza which is just around the corner reported last night and missed.
The stock is going to get hammered today and highlights the risk of owning this kind of name in this kind of environment. Salesforce.com is still growing and therefore has become very overowned by the folks who have to own growth stocks. And very expensive. There's a sexy open-endedness to the cloud opportunities.
A very smart Wall Street guy wrote the following this morning:
"To be fair, this one didn't have much of a chance, even if the numbers had been OK -- way too many edgeless, positive previews heading into last night's event and the stock was trading at a 100% premium to the group -- tough combo."
As my grandmother likes to say, "There you go."