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Wednesday, August 25, 2010

Salesforce.com's stock ticker reflecting its main business-good or bad?

The meteoric rise of Salesforce.com has caught several tech analysts by surpise. I was looking at a contra view (http://seekingalpha.com/article/222106-salesforce-com-red-flags-and-hyperbole) when it hit home.t

Look at the ticker "CRM"-also the acronym customer relationship management which is the company's bread and butter, It struck me that if an investor has heard of CRM, this stock will take up mindspace and connect thereby building the brand.

But now that the company plans to focus on cloud computing, does this symbol still make sense? It reinforces the impression that the company is all about CRM-which is no longer true.

Takeaway:- We become prisoners of our own success. Rebranding the company is possible but changing a stock ticker is not that simple. The company faces an unenviable job changing lay investors's perception.

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