Salesforce.com (CRM) Stock Jumps on Potential Microsoft Bid

NEW YORK (TheStreet) -- Shares of Salesforce.com (CRM) were gaining 3.5% to $74.07 Tuesday following a report that Microsoft (MSFT) is exploring a potential bid for the cloud services company.

Microsoft isn't in talks with Salesforce yet, and no deal is imminent, according to Bloomberg. Reports of another company talking to Salesforce as recently as April reportedly drove Microsoft to consider a bid for the company, according to the news service.

Salesforce is reportedly working with two investment banks to figure out its response to approaches from potential bidders. The company's options include rebuffing offers and working out a sale with the bidders.

TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS Charitable Trust had this to say: "Marc [Salesforce Founder, Chairman, and CEO Marc Benioff] has repeatedly told me he won't comment because he can't comment and I have to take him as his word and not rumor-monger."

Salesforce currently has a market value of $47 billion.

About 11.5 million shares of Salesforce were traded by 3:20 p.m. Tuesday following the report, above the company's average trading volume of about 4.8 million shares a day.

TheStreet Ratings team rates SALESFORCE.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate SALESFORCE.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 increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

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