NEW YORK (TheStreet) -- Shares of Salesforce.com (CRM) - Get Report were falling in mid-afternoon trading on Monday as Morgan Stanley said the probability of the company buying social media company Twitter (TWTR) is low, Barron's reports.
"Given an optimistic view on the growth potential of the current Salesforce.com portfolio, and an inability to see revenue synergies from the combination, rumors of a Twitter bid give us significant pause," the firm said.
Salesforce.com, a San Francisco-based cloud solutions provider, already has a deal with Twitter in which it uses Twitter's data to generate leads in real time.
"We struggle to see any near-term revenue opportunities from the combination of Salesforce.com and Twitter that aren't available today via the current partnership - for example social listening and social media management," the firm said, Barron's notes.
Additional long-term benefits of the deal, including an expansion of Salesforce.com's artificial intelligence capabilities using Twitter data, are still "difficult for us to see," Morgan Stanley said.
If Salesforce.com were to acquire Twitter, Morgan Stanley sees downside in Salesforce.com stock of about $41 to $45 per share. The firm estimates that the deal could be worth $14 billion to $17 billion.
Morgan Stanley has an "overweight" rating and $107 price target on Salesforce.com stock.
Shares of Twitter were dropping on heavy trading volume mid-Monday afternoon, more than 34.77 million shares trading vs. the 30-day average volume of 29.39 million shares.
Separately, TheStreet Ratings objectively rated Salesforce.com stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including premium valuation, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.
You can view the full analysis from the report here: CRM