Salesforce.com, inc. (NYSE:CRM) Shares are tearing the market apart this year at the back of strong trends in the cloud and the enterprise business. Yahoo! Inc. (NASDAQ:YHOO) on the other hand continues to struggle amidst concerns over the kind of impact the upcoming spinoff of stakes in Alibaba Group Holding Ltd (NYSE:BABA) will have on the stock. CNBC’s contributors Timothy Seymour, Karen Finerman remain long on Yahoo with Pete Najarian and Guy Adami affirming bullish sentiments on salesforce.com, inc. (NYSE:CRM).
Salesforce.com, inc. (NYSE:CRM) is up 14% this year making it a no-brainer as the stock to invest in compared to Yahoo! Inc. (NASDAQ:YHOO), which is down by 12%. Seymour affirms that the current valuation of Yahoo makes it a better option to invest in as it is cheap also considering the bar is so low for a potential upside rally.
“It probably moved with an EBITDA of 1.2 instead of an EBITDA of 0.7 since Alibaba took a plunge. Tumblr, the core business is starting to pay some dividends Bank of America Corp (NYSE:BAC) saying they are going to do over a $100 million there, the company has said that. The bar is so low that will drive Yahoo! Inc. (NASDAQ:YHOO), people are expecting nothing from the core. I think this is a perfect time to buy it,” said Mr. Seymour.
Mrs. Finerman is bullish on Yahoo! Inc. (NASDAQ:YHOO), suggesting that Alibaba has found its bottom and could be in for a bounce back after struggling in the recent months, a move that could have a considerable impact on the stock. Some of the other catalysts that could propel Yahoo to new highs include an activist investor getting involved with the stock or Yahoo Japan. It is, however, unclear whether Yahoo will bounce back to the $55 mark as the stock’s movement remains closely tied to how Alibaba trades, Mr. Najarian affirms.
Salesforce.com, inc. (NYSE:CRM) valuation might be a little bit high, but the company continues to enjoy strong demand and growth on its maturing cloud business according to Najarian. The analyst believes salesforce.com, inc. (NYSE:CRM) could rally to $80 a share on the ongoing growth in service and marketing spaces. Salesforce 33% billings growth year-over-year and ongoing wave in analytics platform makes it a perfect investment when compared to Yahoo! Inc. (NASDAQ:YHOO), which Mr. Adami believes is dead money.
“I like Yahoo too with Pete but Yahoo is dead money here at $43 can’t get out of its own way. salesforce.com, inc. (NYSE:CRM) has been a great stock over the past three or four years,” said Mr. Adami.
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