Dan Loeb's Third Point has a stake in Salesforce (CRM) - WSJ

Third Point LLC, a New York-based hedge fund founded by Daniel Loeb, has a stake in Salesforce (NYSE: CRM), according to Wall Street Journal.

Loeb is now the fifth activist investor that is known for having a stake in Salesforce, alongside Elliott Investment Management LP, Starboard Value LP, ValueAct Capital Partners LP, and Inclusive Capital. The same news outlet reported in January that Elliott has a multibillion-dollar stake in CRM.

The report doesn’t mention Loeb’s plans or the size of the position in CRM. Although Third Point is known for taking stakes and pushing for changes to increase shareholder value, it is possible the activist investor will stay quiet this time, the report added.

Salesforce said last month it will cut 10% of its global workforce, admitting it was hiring too quickly in the aftermath of the pandemic.

“As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing,” Salesforce Chief Executive Marc Benioff wrote in a letter to employees.

More and more hedge funds are investing in Salesforce after a disappointing performance in 2022. However, shares are up over 25% year-to-date on improving risk sentiment for tech companies, as well as on the activist news.

Salesforce stock is up just over 1% in pre-market Thursday.

By Senad Karaahmetovic

You May Also Be Interested In

• S&P 500 tumbles as Powell rules out rate cuts in 2023
• Wall Street digests Powell's comments on banks, rate cuts and inflation
• Price hikes help General Mills (GIS) to boost FY outlook; Analyst reactions positive