Salesforce drops as debt-funded $25B buyback revives leverage and credit concerns
CRM•Salesforce shares are falling as investors refocus on the company’s newly levered capital-return plan after its record $25 billion bond sale to fund a $25 billion accelerated share repurchase. The debt-funded buyback triggered a Moody’s downgrade to A2 and prompted S&P to shift its outlook to negative, keeping pressure on the stock.
1. What’s moving the stock
Salesforce (CRM) is trading lower as the market digests the company’s recent decision to fund a massive accelerated share repurchase with a record-sized bond offering. The financing shifts the narrative from purely operating execution to balance-sheet risk, and the stock is reacting to the higher leverage profile and the optics of using debt for shareholder returns. (tipranks.com)
