Seeking AlphaSeeking Alpha

Why did Salesforce shares drop by 8% Thursday? The boss is leaving the building.

  • Salesforce (NYSE:CRM) shares trimmed their losses, Thursday, but still finished the day down by more than 8% as Wall Street didn't like what the company said about its outlook, or the changes in its executive suite.
  • On Wednesday, Salesforce (CRM) said co-Chief Executive Bret Taylor would leave the company at the end of January. The move was seen as a surprise, as Taylor, who had been with Salesforce (CRM) for six years, had only been sharing CEO duties with Marc Benioff since November 2021.
  • When Taylor's officially leaves Salesforce (CRM), Benioff will become the company's sole CEO.
  • Along with Taylor's departure, investors weren't too impressed with Salesforce's (CRM) fourth-quarter outlook in which the company forecast earnings above analysts' expectations, but gave a revenue estimate that potentially falls below Wall Street's predictions.