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Salesforce CEO Talks FANG Stocks, Singles Out Upside In Amazon's AWS

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Salesforce CEO Talks FANG Stocks, Singles Out Upside In Amazon's AWS

Salesforce.com, inc. (NYSE: CRM) CEO Marc Benioff is considered to be one of the greatest tech CEOs in the business. So, when he talks about technology stocks and valuations, investors listen to what he has to say.

Fewer Opportunities For Salesforce

Back in 2016, there were a lot of opportunities for Salesforce to acquire smaller private companies, but that isn't the case anymore, Benioff told CNBC in an interview at the World Economic Forum. The reason is quite simple: Many technology entrepreneurs were looking to sell their business last year, but the public market accelerated this year, and business owners are instead looking to go public.

That creates an environment in which it is a lot more difficult for Salesforce to pursue acquisitions, the executive added.

Bullish On Amazon

Benioff went on to share his thoughts on why the "FANG" group — an acronym that includes Facebook Inc (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX), and Google/ Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) is still undervalued despite a strong performance so far in 2017.

Amazon's AWS segment is a close partner and client to Salesforce, which gives Benioff insight to the business that few others have. The segment already surpassed $20 billion in revenue and is on pace to hit $100 billion which should generate "tremendous upside" to Amazon's stock, the executive added.

Related Links:

Amazon Says Walmart Is Bullying Its Cloud Clients

Marc Benioff Is Complaining About Losing Out On LinkedIn: 'Sore Loser' Or 'Pretty Good Battlefield Strategy'?

Posted-In: Amazon AWS AWS CNBC FANG Marc Benioff World Economic ForumTech Media Best of Benzinga

 

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