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Activist Starboard Value has once again set its eyes on Salesforce (CRM). The hedge fund that first shook-up Salesforce management three years ago just doubled down hard, boosting its stake by nearly 50% in the second quarter, according to a regulatory filing on Aug. 14. Starboard now holds approximately 1.3 million shares as of June 30, a dramatic surge from 849,679 shares at the end of Q1, when it had already increased its position by a notable 52%. In fact, Starboard's latest move comes at a strategic time.
CRM stock has been battered this year as investors flee due to slowing revenue growth, shaky execution of artificial intelligence (AI) strategies, and aggressive acquisition spending. These are the exact same red flags that triggered the activist uprising in late 2022 and early 2023, when Starboard teamed up with Third Point, ValueAct, and Elliott Management to demand better margins and operational efficiency.
