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As the United States gets ready to roll out mass vaccinations for COVID-19, Salesforce.com (NYSE: CRM) is working to produce software to coordinate scheduling and distributions between medical professionals and government entities. This new project, called “Vaccine Cloud,” has caused investors to turn their attention to Salesforce.com again, as governments struggle to put vaccination efforts into place for the general public.
If you’re interested in making your first investment in Salesforce.com, our guide will get you started. We’ll show you how to buy stocks, how to get started with a broker and a little more about the history of Salesforce.com and the potential next moves for the company.
How to Buy Salesforce.com Stock Summary:
- Step 1: Pick a brokerage.
- Step 2: Decide how many shares you want.
- Step 3: Choose your order type.
- Step 4: Execute your trade.
How to Buy Salesforce.com (CRM) Stock
No matter if you’re investing in Salesforce.com or any other company that trades on a major stock exchange, you’ll go through the same basic processes. Learn how you can get started buying and selling your first investment.
Step-by-Step Guide:
- Pick a brokerage.
The first step to buying any type of stock as a retail investor is to open an account with a stockbroker. A broker is a financial service company authorized to buy and sell stocks on your behalf, usually through the use of an online trading platform. After you open an account with a broker, you can begin placing stock buy and sell orders from the comfort of your home.
Any broker based in the United States will allow you to buy and sell Salesforce.com stock as it trades on the New York Stock Exchange. This means that you’ll have a choice between a wide range of brokers. Some of the factors that you might want to consider when you compare brokers include:
• Trading platforms: Some brokers focus on providing a streamlined, simple trading experience, while others offer a larger selection of analysis and charting tools that more advanced users can incorporate into their investing strategy. If this is your first time opening a brokerage account, you might want to choose a broker that offers a simple trading interface.
• Commissions and fees: In the past, every broker would charge you a flat rate or percentage commission to execute trades on your behalf. Today, many brokers now offer commission-free trading and investing opportunities. Be sure that you understand your broker’s fees and commission schedule before you open an account, as these fees can quickly cut into your profits.
• Customer service options: If this is your first time opening a brokerage account, it can be comforting to know that you have the option to connect with a human customer service team. Compare each broker’s customer service options and limitations before you open an account. The right contact method can sometimes mean the difference between a problem that’s resolved quickly and one that drags on for hours or even days on end. - Decide how many shares you want.
After you open or fund your account, you’ll need to decide how many shares of CRM you’d like to purchase. Take a look at the current market price of CRM to get a better idea of how much you can expect to pay per share. You may also want to track how the price of CRM changes over time to decide when you want to buy in.
Can’t afford to purchase a full share of CRM? Most brokers allow investors to purchase fractional shares of major stock offerings. This allows you to invest as little as $1 in a large-value stock of your choice. - Choose your order type.
When you know how many shares of stock you want to buy, you can place a buy order through your broker. Most brokers offer multiple types of buy orders that you can use to invest. Some of the most common stock orders your broker might offer you access to may include:
• Market orders: A market order is the most basic type of buy order. When you place a buy order, you tell your broker that you want to buy a set number of shares at the current market price. The “market price” is the ask price that sellers who hold the stock are willing to sell their shares for. When you place a market order, your broker will execute the order as quickly as possible. This means that the price you’ll pay per share may change as market conditions change.
• Limit orders: A limit order gives you more control over the price that you pay per share of stock you purchase. When you place a limit order, you’ll specify how much you’re willing to pay per share as well as how many shares of stock you want to buy. If your broker is able to fill the order at or below the limit price you set, your broker will complete the order. If the price per share rises above the limit price, your order will not execute your order.
Depending on the type of broker you choose, you may have the option of using additional order types. - Execute your trade.
After you complete your order, execute it through your broker. From here, you can sit back and relax — your broker will take care of filling your order and depositing it into your brokerage account. If your broker is not able to close out your order, they may leave it open or close it at the end of the trading day, depending on the options offered.
Best Online Brokers
Not sure where to begin your search for the best broker? Consider a few of our top choices below for some beginner-friendly ideas.
Salesforce.com Stock History
Salesforce.com is an American software as a service (SaaS) provider best known for offering a complete suite of customer management and enterprise application tools. Salesforce.com’s most popular product is its Salesforce software, which provides businesses with customer relationship and social media management tools, tools for internal task management and a singular place to store clients’ documents and personal information.
Salesforce.com had its initial public offering (IPO) in June of 2004. The stock opened at a price of $11 per share. Salesforce.com has been one of the winning stocks to rise from the current COVID-19 pandemic, with stock valuation peaking at a price of about $272 a share in August of 2020.
Salesforce.com has seen massive growth in stock valuation since more companies switch from in-person operations to work from home strategies due to COVID-19.
Pros to Buying Salesforce.com Stock
Investors’ eyes have recently turned back to Salesforce.com as medical manufacturers search for ways to effectively deliver the new COVID-19 vaccinations to the public. Salesforce.com has recently introduced its new “Vaccine Cloud” software, which purports to provide governments and medical professionals with a comprehensive platform to stream vaccine administration and distribution.
The company claims that the software can implement digital vaccine solutions in a matter of weeks, increase equitable access to vaccinations, streamline vaccine distribution schedules and more. As the manufacture and distribution of COVID-19 vaccinations remains one of the world’s top priorities, it’s possible that widespread use of this new technology may result in increases in Salesforce.com’s share prices.
Cons to Buying Salesforce.com Stock
Though CRM stock has performed well through the current pandemic, it’s possible that share prices are inflated due to investor expectations of the Vaccine Cloud software. Salesforce.com’s P/E ratio is an exceptionally high 61.93, which may indicate that the company’s stock is overvalued when compared to its earnings data. If the rollout of the Vaccine Cloud software fails to meet experts’ expectations, it could result in a sharp decline in the stock price and interest in Salesforce.com.
In addition to potential overvaluation, Salesforce.com’s business model leaves it open for unique risks not seen with some competitors. Because Salesforce.com doesn’t own all of its data centers, the company has less control over its own infrastructure. This may result in the higher chance of a data hack or security breach, especially now that the company plans to host large amounts of personal medical data on its servers.
Invest for the Future
Investing is an exciting way to save for the future and watch your money grow over time. However, it’s important to remember that the value of individual companies can drop at any time. Never invest more money than you can afford to lose in a single stock.
About Sarah Horvath
Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.