Jeffrey Smith, CEO of Starboard Value LP and Chairman of Papa John’s International Inc.
Brendan McDermid | Portal
Starboard Value LP has acquired a stake in Salesforce, with founder Jeff Smith saying there remains a significant opportunity in the enterprise software maker, according to CNBC’s David Faber.
Dow component Salesforce was up 7% in premarket trading on Tuesday.
Salesforce’s stock is down more than 40% this year. The company issued disappointing guidance for fiscal 2023 in August, in part due to negative currency effects.
Smith told Faber the stake was substantial without specifying the dollar amount.
The hedge fund manager said most of Salesforce’s valuation discount at the moment is due to an “underperforming mix of growth and profitability.” Smith added that the software company hasn’t achieved significant operating leverage compared to its peers in recent years.
Smith has remained a prolific activist investor throughout the pandemic, calling for changes at Humana, Kohl’s, Mercury Systems and others.
Starboard’s CEO will be on CNBC at 10:15 am ET to talk more about the new holding.
Starboard Value has approximately $6.2 billion in assets under management through the first quarter of 2020, according to filings.