Before we get to the bear case, let's dive into one more interesting thing:
Salesforce is officially going after Microsoft and Microsoft is going after Salesforce. Microsoft bought LinkedIn to essentially build its own CRM system for sales and contacts. They saw what Salesforce was trying to do. Now however, Salesforce is flipping the script. Imagine the following:
You name it
They are now going right after Microsoft Word and Excel. Also, to some degree, Google Business Solutions. That's where the bear case begins, however.
This space is extremely competitive now and it's requiring more and more risk. A $27 billion acquisition? Salesforce could not build their own Slack for $27 billion? Salesforce could not find another cheaper company to acquire? Meanwhile companies like Discord are growing fast and coming for Slack.
It seems that Salesforce's recent weakness, and point of this chart that Salesforce will return to its node, is that some long-term investors and holders are slightly weary of the cash spend and M&A mania that Salesforce has been on.
They keep buying, rather than growing organically.