Salesforce.com (CRM) has been endlessly linked with Microsoft (MSFT) with the idea that the way Microsoft can get to its lofty cloud projections is simply to buy the darned thing.
Here's something I rarely say: I think you can win either way. When I look at the numbers that SAP (SAP) put up last night I am truly impressed with its cloud growth and its regular business. The fact that salesforce.com is going up against SAP with guns blazing and SAP still does well tells me that this pie for being on the cloud is unstoppable and the transference still early.
Think about this: SAP's cloud and support revenues more than doubled! Analysts were looking for 577 million euros, according to Bloomberg, and it came in at 600 million euros -- astonishing growth.
Now, do we know anything about a possible Microsoft deal with salesforce.com? Earlier this spring, salesforce.com traded up to these levels on a spike because the two were apparently talking. But they could be talking about anything.
Marc Benioff, CEO of salesforce.com likes Satya Nadella, the CEO of Microsoft, and vice versa. We understand that Benioff apparently cancelled a bus tour for a meeting with top level management. We will never know whether Benioff's a seller. He won't talk about it. He can't talk about it.
We do know, however, that business is strong and Dreamforce was a monster success. That's why I would say if you own it don't sell it. I am not, with the market this overbought, advising anyone to chase.
But if you can win both ways I understand why the stock's getting the love that it has long deserved.