Things haven’t been the same for Salesforce’s usually nicely rewarded investors since it plunked down a startling $15.7 billion to buy software play Tableau.
Salesforce’s stock (CRM) has lagged the broader Nasdaq Composite and Dow Jones Industrial Average for a majority of the time following the deal announcement on June 10. Recall that Salesforce’s stock dropped 8% on the day the deal was announced.
The reaction by Wall Street to Salesforce’s largest acquisition to date has been mixed at best. Some point to Salesforce using its stock to fund the entire transaction as a negative. Others think the company overpaid for a software company that has lost gargantuan sums these past three years.
Salesforce says Tableau (DATA) will help it sell a more complete offering to companies undergoing big tech transformations. And top Salesforce executive Bret Taylor thinks the market’s reaction has totally missed the mark.
“With Tableau it’s all about digital transformation,” Taylor, who is Salesforce’s president and former Facebook chief tech officer, said on Yahoo Finance’s The First Trade.
“When I talk to C-suite level executives three themes come up around digital transformation. The first is around integration. How can you bring together all of your customer data and provide a simple experience,” added Taylor. “The second is around customer experience around customer service and marketing. And the third pillar is around data. When you are going through that digital transformation you want to empower every single one of your employees to be literate around data. So we are excited about the opportunity to bring together those three pillars that empower every company.”
The quicker Salesforce can bring to life what Taylor points out on Tableau, the better.