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Salesforce Deflates After Announcement Hype

The CRM software company's 6% Wednesday boost on a media invitation fizzles a bit.

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shareholders took profit Thursday after the stock's previous-day's boost on speculation of a far-reaching deal with


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Shares were trading down $1.35, or 2.8%, to $47.37 late afternoon. On Wednesday, the company closed up 6.1% to $48.72 after Salesforce sent to analysts and media an invitation to a June 5 announcement with an unnamed partner.

"I think they have been leaking to the market that it's going to be something with Google," said Cowen & Co. senior analyst Peter Goldmacher. He added that the announcement may prove disappointing after "all the hype built up around it."

Goldmacher speculated that the partnership will be an extension of Google AdWords with Salesforce's customer relationship management software.

Although the two companies are not currently partners, software from Kieden, Salesforce's 2006 acquisition, does track AdWords, Goldmacher said.