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Motley Fool Hidden Gems Investing

Battling Giants

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 1 December 2022

⏱️ 23 minutes

🧾️ Download transcript

Summary

What's it like competing against a business that's 1,000 times bigger than your own? (0:21) Emily Flippen discusses: - Salesforce co-CEO Bret Taylor leaving his job exactly one year after he got it - Whether the market is overreacting to Taylor and underreacting to a strong 3rd-quarter report from Salesforce - Kroger's strong profits and prospects for expanding its grocery empire with a proposed acquisition of Albertson's (12:10) Jeff Santoro and Jamie Louko engage in "bull vs. bear" debate over cloud infrastructure company DigitalOcean. Stocks mentioned: CRM, CMG, TEAM, KR, ACI, DOCN, MSFT, AMZN, GOOG, GOOGL Holiday Music: Silent Night by Ska-J, Hey Skinny Santa by JD McPherson Host: Chris Hill Guests: Emily Flippen, Jeff Santoro, Jamie Louko Producer: Ricky Mulvey Engineers: Dan Boyd, Tim Sparks, Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Another COCEO bites the dust and we've got a bull versus bare debate on cloud infrastructure.

0:11.1

Botley Fool Money starts now.

0:14.8

I'm Chris Hill, joining me, Botley Fool Senior analyst, Emily Flippin.

0:24.8

Thanks for being here.

0:25.8

Thanks for having me, Chris.

0:27.7

It was one year ago today on our Market Followery podcast that the lead story was Salesforce

0:34.4

and the company's third quarter results, which were really good and they were overshadowed

0:40.8

by the news that CEO Mark Benioff was being joined by Brett Taylor as COCEO.

0:47.2

And here we are one year later and once again, Salesforce, third quarter profits and revenue

0:51.9

came in higher than expected.

0:54.2

And this is getting overshadowed again, Emily, by the news that Taylor is leaving the company.

1:00.7

We will get to the results in a minute, but I am struck by the fact that for the second

1:05.0

time in less than three years, a COCEO is leaving Mark Benioff and Salesforce.

1:12.1

And Benioff is not as sad about it in this commentary.

1:17.0

It makes you wonder if it was never quite a great relationship to begin with, but you

1:20.5

certainly do feel bad for Mark Benioff.

1:23.5

Now re-entering the role of sole CEO, he is the co-founder of Salesforce.

1:29.2

So he has been there since the beginning for this company.

1:32.2

But Brett Taylor was an operational CEO, if you will, to match Benioff's visionary tendencies.

1:38.9

So certainly the market did not appreciate this departure, not only because the tenure

1:43.2

was so short, but also because it raised the questions of, well, what's going on behind

1:47.4

the scenes in these relationships?

...

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