Don't expect Apple to can people en masse like some of its rivals, says Wedbush analyst Dan Ives.
Your article about Salesforce (“Activists call Salesforce to account with campaign for focus on profits”, Report, January 26) contains clues to a core underlying problem for investors — prolific stock issuance, both for employee compensation and expensive acquisitions. The statement that “Salesforce’s operating margins have remained around 20 per cent for years” does not tell the complete story. Operating margins, using the so-called generally accepted accounting principles or US GAAP, have been closer to zero.
Salesforce appointed three new directors to its board on Friday as the software giant seeks to fend off criticism from activist investors and turn round a business being hit hard by the broader tech downturn. The San Francisco-based group has appointed Arnold Donald, former chief executive of cruise operator Carnival Corporation, Sachin Mehra, chief financial officer of Mastercard and Mason Morfit, chief executive of ValueAct Capital, an activist fund that is also an investor, according to people familiar with the matter. “As highly respected business leaders, they each bring valuable experience to further enhance and balance the diverse skills on the board and advance our value-creation initiatives,” said Marc Benioff, chair and co-chief executive of Salesforce.