Shares of salesforce.com rose late Wednesday afternoon as the cloud computing company took the lid off the news that it was planning to launch a new product at its Dreamforce conference slated for October.
The company is hoping Einstein, the Artificial Intelligence product it is working on introducing to the world, will propel her to fresher growth.
Salesforce’s Dreamforce conference hold in San Francisco and the event typically draws around 170,000 attendees. The company believes this will be the perfect time and place to formally make the big announcement.
It could be recalled that Salesforce acquired a handful of artificial intelligence companies in the last two years and Forbes believes this coming announcement explains those decisions. Other companies to have towed the same path in the past include Google and Microsoft.
Salesforce shelled out $582 million earlier this month to purchase Quip, a word processing app. The company had earlier spent $2.8 billion dollars in June to acquire Demandware, an enterprise cloud commerce provider.
Interestingly, the company could have also been the owners of LinkedIn by now, but it could not outbid Microsoft in her $26.2 billion acquisition – although Salesforce’s bid value still remains unclear.
Amidst the rise in the value of the company’s stocks, stocks rating website, TheStreet Ratings looked beyond the impending announcement and the excitement it is generating to make a “risk-adjusted” assessment of investment total return prospect over 12 months period and scores Salesforce a C.
The factors considered included some of the company’s strong suits such as impressive stock price performance, very robust growth in terms of revenue and earnings per share; it also took into account weaknesses chief among which is Salesforce’s return on equity.
All fingers remain crossed till October when Einstein gets launched.