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BenzingaEditorial

Salesforce- A Story in the Making?

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Sales Force News

Salesforce (NYSE: CRM) is the only remaining potential outside disruptor to Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), Google (NASDAQ: GOOG) world’s dominance. With Oracle (NYSE: ORCL), International Business Machines Corporation (NYSE: IBM), SAP (NYSE: SAP), HP Inc (NYSE: HPWQ), Dell Technologies (NYSE: DELL) and others dropping out of the race, Salesforce is the last man standing. Although it was undervalued for a relatively long time, after its recent inclusion into the Dow Jones Industrial index, its prospects have greatly improved. The question is just how much?

The pandemic has greatly accelerated the digital transformation, a trend the world has already embarked on. Moreover, AI became even more attractive as did everything that can replace physical human contact. Big Tech is thriving amid this unprecedented crisis because it is among those who don’t need physical human-to-human contact to generate revenue. This makes Salesforce into a perfect fit for this brave new world. On the other hand, it is directly competing with Microsoft whose strength is nothing less than scary. The first question we need to answer is what is Salesforce competing against exactly?

Pandemic winners and their superpowers

Apple is controlling its devices by love, not fear. It designs the most beautiful machines that people love to use. These devices became status symbols. So, it’s increasingly difficult for other brands to lure customers to switch their lives to another device or platform. Apple is aware of this and is doing a great job at keeping its customers happy. It is so much more than its device and services, it’s a lifestyle choice.

Unlike the well-guarded Apple, Microsoft is an open hardware ecosystem. It works with devices from many vendors. Windows is also much more widespread across the globe than Apple OS. If Apple is about artistic perfection, Microsoft is about productivity, ease and all-in-one solutions.

Jeff Bezos’s empire is like a combination of Apple and Microsoft, but multiplied. The difference is that Amazon places an obsessive focus on its customers. AWS is basically an IT supermarket. Bezos used the same philosophy with which he created the bookstore and simply applied it to IT services. What made it extraordinary is the concept. Amazon is making its own B2C products such as Prime and running them on their own infrastructure. It is wrapping them as AWS services and selling them to B2B customers. The end result is that customers are de-facto paying Amazon for its B2C infrastructure by paying for B2B AWS services. Only Microsoft so far succeeded with its similar B2C combination of Windows, Office 365 and B2B Azure.

There are many other search engines but if you are like the majority of people, whenever you need something, you just type it and let Google do all the heavy lifting. Even Microsoft is aware of it—that’s why Bing is integrated into the Windows browser.

So how can Salesforce compete with that?

Salesforce has all the winning attributes

In essence, Salesforce allows companies to sell, service, market, and connect with customers, partners and employees. In times like these when companies are fighting for dear life, speed is of an essence. If Marc Benioff is master in something, it’s in speed of delivering solutions. Benioff is well aware that for Salesforce to be successful, it needs to be on the mind of CEOs. It needs to be their go-to tool. Salesforce is as creative as Apple. It provides reliable all-in-one solutions like Microsoft. It has Google’s engineering skills. The cherry on top is that it has Amazon’s customer focus. Moreover, Salesforce has a massive fan base that further evangelises Benioff’s religion around the globe.

What are the obstacles preventing Salesforce from becoming a trillion-dollar company?

The simple answer is $750 billion. In a way, though, this amount is almost unimportant when it comes to key future developments. Microsoft has over a billion enterprise users as its products are integral to nearly every enterprise across the globe. During the first two months of the pandemic, Microsoft Teams saw its engagement skyrocket from 11 million as it exceeded 75 million users. This massive footprint does put it in a better position than Salesforce. But this doesn’t mean Salesforce cannot be one of the key beneficiaries. If the US Congress forces Amazon to spin AWS, Salesforce and AWS could likely follow the 1982 story of AT&T (NYSE: T). Long story short, breaking up a company into pieces led to these segments becoming even more powerful than the original. But, mergers and acquisitions come with significant costs that need to be justified. Also, they could disrupt the stock price. But most importantly, they would be a thorn in already irritated regulatory eyes. Regulators would gain yet another opportunity to attack Big Tech for its growing power. These forces are not to underestimate, but Salesforce has a shot if it plays its cards right. Even Satya Nadella knows how dangerous it would be if AWS and Salesforce joined forces. If 2020 has taught us anything is that anything is possible – even the unimaginable.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

The EV Industry Is Worth More Than The Traditional Automakers

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Many things that were considered to be impossible actually happened in 2020. One of them is that electric vehicle makers became more valuable than traditional automakers and by about by about $100 billion, according to Barrons. EV makers are now worth about $1.3 trillion whereas traditional car makers combined have a market capitalization of about $1.2 trillion. This figure includes 100 auto makers around the globe with market caps ranging from $10 million all the way to Tesla’s (NASDAQ: TSLA). Based on its fully diluted share count, Tesla is worth about $1 trillion.

This feat is even more impressive if you consider that this is a much smaller industry based on actual number of cars. The last year taught us that the connection between the stock market and the economy is imprecise at best. However, the fact that technology enabled batteries to overpass ICEs is the kind of disruption that investors look for. Even though Tesla is the main contributor to the value of the EV market, the overall image is just as impressive as three of the top five most valuable are EV makers, with Tesla being followed by NIO (NYSE: NIO) and BYD (OTC: BYDDF). As for traditional automakers, Volkswagen (OTC: VWAGY) and Toyota (NYSE: TM) are the most valuable ones with both undergoing serious investments into electrification.

Traditional automakers are going electric

On Friday, BMW said it aims to double its sales of fully-electric vehicles this year. Including plug-in hybrids, it aims for a 50 percent increase in sales of electrified vehicles versus 2020. It did not give sales volumes for its fully electric vehicles but in data released on Tuesday, BMW said it sold close to 193,000 electrified vehicles, including fully electric and plug-in hybris in 2020. As a reminder, Tesla delivered almost half a million all-electric models last year, which is 75% of General Motor’s (NYSE: GM) third-quarter deliveries.

The automotive industry is at an inflection point

BEVs take approximately 1% of the total market for light vehicles, but the figure rises to about 3% if we include hybrid and plug-in hybrids. Why exactly it takes a relatively small market share to disrupt an industry is a bit of a mystery, but one reason is that more investment capital tends to flow in when market share come is within the 3% to 5% range. As more capital drives more innovation and improvement, investors are lured by high growth rates, bringing in even more capital and this is how success is made. Over the past year, EV makers have raised more than $20 billion in fresh capital, which is a fraction of what traditional auto companies spend on plants and equipment. However, on a per car basis, the EV industry is investing at roughly 10 times the rate of the traditional industry. Add to this President Joe Biden’s aim of a carbon-free future by 2035 and the drive toward adoption of EVs which is already seeing impressive results in Europe, the all-electric future is around the corner.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Europe and EVs- A Blossoming Relationship

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Tesla (NASDAQ: TSLA) delivered around 96,000 units to the key European EV market in 2020. But in Europe, Tesla’s cars were overtaken in popularity by Volkswagen (OTC: VWAGY) and Renault (OTC: RNLSY). Sales of electric vehicles by European car makers accelerated rapidly in 2020 amid severe fines for car markers whose fleets don’t meet new emissions targets and generous incentives for buyers to trade in their ICE vehicles.

Volkswagen

Volkswagen reported it delivered 212,000 electric cars across the globe in 2020, which is 158% more than in the year prior. 134,000 of those vehicles were battery-electric vehicles, which grew 197% compared with 2019. Volkswagen also said that its ID. 3 model was the top-selling car in Sweden in December by absolute numbers. All-electric Volkswagen models were on top the Netherlands and Germany, taking approximately 23% of each country’s BEVs market.

Mercedes Benz

On January 8th, Mercedes-Benz-owner Daimler (OTC: DDAIF) said that the brand sold more than 160,000 plug-in hybrids and all-electric vehicles in 2020, representing growth of more than 228% from 2019. The share of EVs in Daimler’s sales mix rose drastically from 2% in 2019 to more than 7% in 2020. Also, Mercedes-Benz brand remained the world’s top-selling luxury carmaker for the fourth consecutive year.

Renault

Renault reported that it doubled its electric-vehicle sales in Europe. While group sales fell more than 21% in 2020, its EV sales grew 100% growth from 2019 to 115,888 vehicles. Moreover, total orders at the end of December 2020 were up by 14% compared to December 2019, which was attributed to new hybrid offerings. EVs were the only good news in an otherwise bleak 2020 for the French carmaker, which underperformed both global and European car markets. At the very least, Renault avoided fines as it met its 2020 EU emissions targets. On January 14th, its chief executive officer Luca de Meo will present a strategy update which is expected  to include reviving some older best-selling models as all-electric models.

BMW

BMW (OTC: BMWYY) which also owns Mini, said that its two brands combined sold 192,646 electric vehicles in 2020 marking an increase of nearly 32% from last year. BMW also met its 2020 EU emissions targets.

Takeaway

European governments have created generous incentives to speed up the adoption of EVs, making them much more affordable. Come 2025 when emission targets become more stricter and threat of fines for not respecting them even greater, Tesla will certainly be playing against fully-fit opponents and could even potentially struggle. An EV-only future looks closer than ever in Europe as the race is now on to challenge Tesla’s leadership.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Lenovo Makes Its Star Market Debut

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The COVID-19 pandemic had completely changed the way people work and learn. Operating from home actually turned around declining PC sales. Smartphones have been picking more and more market share from PCs and if there was no pandemic, this would probably still be the case. But instead of decreasing demand, there was record growth in PC sales as video collaboration software was needed to fulfill the need caused by closed offices and schools. The demand generated months and months of production. According to Reuters, sales of desktops, laptops, and tablets are expected to reach the level of 300 million shipments, the first time after its peak in 2008. This made all the PC manufacturers like Dell Technologies Inc. (NYSE: DELL), HP Inc. (NYSE: HPQ), and Lenovo Group Ltd. (OTC: LNVGY) very happy.

Lenovo CDR story

China’s Lenovo Group is listed at the Hong Kong stock exchange, with about 12.04 billion shares outstanding in total as of January 12th. The company decided to issue Chinese Depository receipts (CDRs) which will be up to 10% of the total number of shares to be listed on the Star Market of the Shanghai Stock Exchange. The proceeds from the issuing of CDRs is planned to help the company’s research and development of new technologies, development of new products and solutions, and overall strategic investments in core segments. On Wednesday, the news caused to stock to drove the stock to its highest level since 2015.

The Star Market

The Star Market was launched in 2019 aiming for innovative technology companies that need more relaxed listing rules. In December, the Star Market counted 200 companies. A CDR or Chinese Depositary Receipt is a way for non-Chinese companies to list their shares in China. This is the equivalent to American depositary receipts (ADRs) which allow non-U.S. companies’ shares to trade on American exchange markets. Technically, CDRs and ADRs are not companies’ shares, but they represent an equity interest in a company. Besides Lenovo, an AI startup that specializes in facial recognition called Megvii Technology Ltd will also be among the first companies to benefit from this new structure.

Conclusion

Lenovo’s listing should be a breakthrough for Shanghai’s Science Technology and Innovation Board. Lenovo, a flagship of the Star Market, should attract much more followers and clear a path for many Chinese start-ups to raise capital in their home country. The company’s strong and growing global presence should continue to demonstrate the boom of China’s capital market and attract more investors to invest.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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