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Here's How Much Investing $1,000 In Salesforce Stock 5 Years Ago Would Be Worth Today

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Here's How Much Investing $1,000 In Salesforce Stock 5 Years Ago Would Be Worth Today

Investors who have owned stocks since 2016 generally have experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return in the past five years is 117.3%. But there is no question some big-name stocks performed better than others along the way.

Salesforce’s Big Run: One company that has been a solid investment in the past five years is salesforce.com, inc. (NYSE: CRM), which produces customer relationship management software.

In the past five years, Salesforce got extremely aggressive in ramping up its acquisitions. In 2016 alone, the company completed 12 major acquisitions including a $6.5 billion deal for MuleSoft.

Salesforce ended the decade with its biggest buyout in history in 2019, a $15.7 billion takeover of Tableau Software. And, it didn’t stop there.

In December 2020, Salesforce went even bigger with a $27.7 billion buyout of Slack Technologies Inc (NYSE: WORK). Slack first went public back in June 2019 at an IPO valuation of around $15.7 billion.

At the beginning of 2016, Salesforce shares were trading at around $77. Salesforce dropped as low as $52.60 soon after during a broad market sell-off due to concerns about slowing growth in China. Fortunately, that level would mark the stock’s low point of the past five years as Salesforce consistently put up impressive growth numbers.

The stock broke $100 for the first time in late 2017 and $150 in mid-2018. Salesforce peaked at $195.72 in early 2020 prior to the pandemic scare.

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Salesforce In 2021, Beyond: Salesforce shares dropped as low as $115.29 when the market bottomed in March 2020. However, a rise in remote work during the crisis ended up being a bullish catalyst for Salesforce’s business. The stock was back at new all-time highs by mid-2020 and ultimately peaked at $284.50 before pulling back to around $235.

Salesforce investors who bought five years ago and held on have generated a solid return on their investment. In fact, $1,000 in Salesforce stock bought in 2016 would be worth about $3,679 today, assuming reinvested dividends.

Looking ahead, analysts are expecting more gains for Salesforce in the next 12 months. The average price target among the 39 analysts covering the stock is $280, suggesting 19.2% upside from current levels.

(Photo by Brooke Cagle on Unsplash)

 

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