Salesforce's Stock Takes a Tumble

CRM stock price plummets on news of accounting irregularities

Investors flee as company's credibility is called into question

May 29, 2023 6:14:30 PM GMT-4
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Common Stock CRM Volume

Salesforce, the world's leading customer relationship management (CRM) company, saw its stock price plummet by 20% in after-hours trading on news that the company had been overstating its revenue for the past several years. The news sent shockwaves through the tech industry, as Salesforce is one of the most respected and successful companies in the world.

The accounting irregularities were first discovered by an internal audit, which was launched after the company received a whistleblower complaint. The audit found that Salesforce had been improperly recognizing revenue from contracts that had not yet been fully executed. The company has admitted to the accounting errors and has said that it will restate its financial statements for the past several years.

The news of the accounting irregularities has raised serious questions about Salesforce's credibility. Investors are now wondering whether the company can be trusted to provide accurate financial information. The company's stock price is likely to continue to fall in the coming days as investors digest the news and assess the damage to Salesforce's reputation.