NEW YORK (TheStreet) -- Shares of Salesforce.com (CRM) - Get Report were higher in late afternoon trading on Wednesday as the San Francisco-based cloud solutions provider is planning to release an artificial intelligence product called "Einstein," which it hopes will lead the company to new growth, Forbes reports.
The product is expected to be formally announced at the Salesforce's Dreamforce conference in October, which typically draws about 170,000 people to San Francisco.
Salesforce's launch of "Einstein" could explain why the company has purchased half a dozen artificial intelligence companies over the past two years, according to Forbes.
The move follows similar artificial intelligence expansions by Alphabet's (GOOGL) Google and Microsoft (MSFT).
Salesforce has continued to expand its reach in the software market, acquiring word processing app Quip for $582 million earlier this month and enterprise cloud commerce provider Demandware (DWRE) for $2.8 billion in June.
In July, Salesforce was outbid by Microsoft in its $26.2 billion acquisition of LinkedIn (LNKD). It's unclear how much Salesforce bid on LinkedIn.
Separately, TheStreet Ratings objectively rated this 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 has this to say about the recommendation:
We rate SALESFORCE.COM INC as a Hold with a ratings score of C. COM INC (CRM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here: