In the fast-growing cloud computing space, Salesforce.com (CRM) is the franchise company. However, this means that the valuation is at premium levels. For example, the stock trades at nine times revenues and 174 times earnings. In other words, this stock is now for those who think the growth ramp will continue. And yes, based on the most recent quarterly report, it does look like good times will not end for awhile.
Profits came to $14.7 million, or $0.11 per share. But excluding certain stock-based charges, the adjusted earnings were $0.29 per share. As for revenues, these climbed 25% to $394.4 million.
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