Marc Benioff's Salesforce Spent a Record $27 Billion on Stock Buybacks in a Single Quarter to Fight What He Calls the "SaaSpocalypse." Here's Why the Size of That Repurchase Matters.
This massive buyback comes amid surging usage of Salesforce's AI products.
Overview
Salesforce's (NYSE: CRM) stock price has fallen 46% from its previous high amid what CEO Marc Benioff calls the "SaaSpocalypse" -- the fear that artificial intelligence (AI) agents will pressure corporate spending on software-as-a-service (SaaS) products.
Benioff doesn't see that playing out. His company spent a record $27 billion in stock buybacks in the first quarter ending in April, signaling confidence in its growth trajectory. That's a massive capital return, equal to nearly 19% of Salesforce's market cap as of April 30.
Details
Combined with continued revenue growth, the repurchase sends a clear message: Management believes the market price may be discounting the company's long-term earnings power.
Source
Originally published at www.fool.com.