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How to buy Salesforce shares
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This guide explains the key things you need to know before you invest in Salesforce stock. We have broken everything down into easy-to-follow steps and have made sure to include the latest information so you are well informed.
Compare the best Salesforce trading platforms
If your mind is already set and you are looking for the best place to buy Salesforce shares, we can help. Simply click one of the links below to head over to a reliable broker with low fees. We have vetted every single one of these platforms to make sure its service is to the standard you expect. For more information on Salesforce, scroll down.
How to buy Salesforce stock, a step-by-step guide
This is a simple task, even for an inexperienced investor. We have broken the process down into the easy-to-follow steps you need to take to make an investment.
- Choose a broker. To make an investment, you need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure, or check out our apps page.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Salesforce shares.
- Place an order for CRM stock. Now navigate to the stocks section of your chosen broker platform. Here, you’ll be able to search for Salesforce’s ticker symbol (CRM) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Salesforce shares will be listed in your account. Congratulations, you’ve just bought shares in Salesforce!
What is Salesforce? And should I invest?
Salesforce was founded on February 3, 1999, by the former executive of Oracle, Marc Benioff, alongside Parker Harris, Dave Moellenhoff, and Frank Dominguez. From its creation, it was a software as a service (SaaS) company, which is a company that generates revenue by delivering software stored in a central location on a subscription basis. The company had its IPO on the NYSE in late 1999, raising $110 million. It does not currently pay dividends.
It markets itself as a comprehensive customer-relationship-management (CRM) solution, and the company’s suite of products cater to this dynamic. This includes subsidiaries Quip, Demandware, Heroku, MuleSoft, Tableau Software, Acumen Solutions and Slack Technologies, which all operate under the Salesforce umbrella.
Some growth-oriented investors may not be satisfied with the large-cap company, and this may affect their decision to invest; moreover, other value investors may question the level of the company’s near $200 billion valuation. However, for middle-of-the-road investors, Salesforce manages to strike a robust compromise between growth credentials and strong foundations of value.
How has the company performed in recent years?
In terms of its share price, fairly well, at least in the last 5 years. However, some have been disappointed by the lack of growth in this regard in 2020 and beyond. However, in terms of revenue, there is very little to complain about. The company’s 2020 revenue of $17.1 billion is a vast increase on the previous year, $13.28 billion. Moreover, its rise seems even more dramatic when you consider Salesforce was generating just $1.31 billion in 2010.
What seems to have curbed the stock’s growth, at least in the near-term, is some of its acquisition expenditure, such as its purchase of Slack for $27.7 billion. Despite this spending negatively affecting short-term growth, there appears to be plenty of potentially bullish information in relation to the company’s long-term vision.
For example, because SaaS services help companies streamline their business, they are always in demand and recession-resistant. Moreover, the growth on offer comes at an intriguing price, with Salesforce quoting 23% for 2021, a much higher price-to-earnings ratio than other tech stocks. Furthermore, the company expects annual revenue to more than double by 2026 to over $50 billion, and there are no controversies surrounding it like other major tech stocks like Facebook and Amazon.
Is it a good time to buy Salesforce shares now?
Right now, Salesforce appears to be well-positioned for growth. It has a strong balance sheet, with a cash position of $5.05 billion, a significant increase on the previous year, $4.15 billion. While its sales growth is slightly down on the previous year at 24.30%, the company has a portfolio of products that could underpin significant progress this year.
One consideration that can’t be ignored is the impact of COVID-19. Because of a massive rise in home-working, some of Salesforce’s senior products have benefited by facilitating normal workplace interactions online. It remains to be seen if this trend will continue as lockdowns come to an end, though some feel the office-working archetype has been disrupted for good due to reduced overheads and pollution, and acceptable efficiencies.
If you want to invest now, conduct due diligence and consider its share price in relation to its earnings and potential for future growth. If you feel it is at a valuation you are happy with, it may be the right time to invest. Otherwise, you may need to wait until it reaches an acceptable level. Regardless, you need to stay up to date with the latest Salesforce analysis to make better investment decisions:
Slack stock price explodes 37% on Salesforce talks
4 Tech Stocks to Buy Amid The Coronavirus Selloff
Buying, selling and trading shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Salesforce shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is Salesforce? How did the company get its start? How did it grow? Is Salesforce’s revenue and profit growth picking up? Is the company innovating? The more you know about Salesforce, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before you start investing in the stock market, make sure you have an understanding of how it works and how people make money. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Use our broker reviews to find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. While if the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the news to stay on top of the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Salesforce shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Salesforce stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Salesforce shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for the long term, hoping to benefit from the company growing steadily throughout. Or, if you see that Salesforce’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Salesforce shares outright, or you can use CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into CRM shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, use our trading course and read our guide to CFD trading to get you up to speed.
If neither of these options appeal to you, then you can find a variety of other ways to invest in CRM stock on this page. If, however, you’re ready to get started now, simply select one of the brokers in the table above.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to purchase the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as cryptocurrency and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to make investments. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to use a specific payment method to invest, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can find the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest Salesforce news
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >