Shares of Salesforce Inc. popped 6% in premarket trading Tuesday after CNBC reported that activist investor Starboard Value LP had taken a “significant” stake in the software company.
The report noted that Starboard founder Jeff Smith shared with CNBC that he saw “significant opportunity” in the shares, which have lost more than 40% of their value so far in 2022. Smith told CNBC that Salesforce’s
CRM,
“sub-par mix of growth and profitability” is driving a valuation discount for the stock.
Starboard didn’t immediately respond to a MarketWatch request for confirmation of the stake, nor did a Salesforce representative.
Salesforce shares are down 50% over a 12-month span, as the S&P 500
SPX,
has lost 18% and as the Dow Jones Industrial Average
DJIA,
of which Salesforce is a component, has declined 14%.
