Salesforce Borrows $25 Billion to Buy Back Its Own Stock. Wall Street Is Worried
BeInCrypto
Salesforce faces market skepticism after borrowing $25 billion for share buybacks, despite beating Q1 earnings expectations with strong AI-driven growth.Summary
Salesforce reported strong Q1 results with $11.1 billion in revenue, driven by rapid growth in its AI-focused Agentforce and Data 360 units. However, investor confidence is wavering due to the company's decision to borrow $25 billion to fund an accelerated share repurchase. Analysts are concerned that the resulting increase in interest expenses and lowered free cash flow guidance will hinder future growth and flexibility, leading to bearish sentiment in the options market.
(Source：BeInCrypto)