Marc Benioff, Chairman and Co-CEO of Salesforce.com Inc., speaks at the Dreamforce conference in San Francisco on November 19, 2019. Introduce new products and discuss promises to social good at Salesforce’s annual software conference. It was suspended for the second year in a row due to protests against cooperation with the U.S. government.
David Paul Morris | Bloomberg | Getty Images
Salesforce has said it has sold all its last shares in data analytics software maker Snowflake. regulatory documents on friday.
Investing through its Salesforce Ventures division, Salesforce still owns shares in five publicly traded companies, including Robinhood and Monday.com. The company previously sold 95% of its Snowflake stock, reducing its holdings to a value of $35 million at the end of 2021. Salesforce sold the rest of its shares in the first quarter, when Snowflake fell 32%.
Salesforce hasn’t reported results for its latest quarter yet, but these holdings have cost other large companies that also invest in their tech peers billions of dollars. Salesforce needs to calculate its market valuation accounting after earning $3.38 billion in investment gains in the last two years when tech stocks soared.
Snowflake was a big investment for Salesforce at the time of the transaction. Snowflake debuted on the New York Stock Exchange in September 2020 as the largest software IPO at the time. Salesforce bought 2.1 million shares in an IPO for $250 million by investing with Warren Buffett’s Berkshire Hathaway, who made the same bet.
With the IPO pop and subsequent rally, Salesforce’s stake quickly crossed $520 million. sales force is similar luck After investing in Zoom’s IPO last year
However, everything in cloud software fell in late 2021 as inflationary pressures and interest rate concerns hit the tech industry. While companies that lose money like Snowflake have been hit hardest, companies that have benefited from the teleworking pandemic boom are also struggling as they reopen their offices.
Even so, Salesforce has delivered a significant return on its investment. The stock traded between $164.29 and $344 in the first quarter at $120 during its IPO. Salesforce had already pulled out of most of its positions by mid-2021 and sold when the stock was well above $200.
Salesforce reps did not immediately respond to requests for comment.
Snowflake CEO Frank Slootman Shows Support for Salesforce Co-CEO Marc Benioff Advertising text provided “Rise of the Data Cloud,” Benioff, in Slootman’s book “Rise of the Data Cloud” said, “tells an amazing story about how Snowflake reimagined the concept of a data warehouse to create a truly innovative cloud platform.”
Snowflake has continued to decline since Salesforce sold out. Shares have fallen 53% so far this year and fell to their lowest level since the IPO on Wednesday. The stock has risen over the past two days as tech stocks have rebounded.
In late April, Wolfe Research launched buy-grade coverage, stating that Snowflake offers “the best SaaS product” and its stock is trading at “Black Friday prices.”
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