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Starboard Value Boosts Stake in Salesforce by Nearly 50%
ByAinvest
Saturday, Aug 16, 2025 6:57 pm ET1min read
Starboard Value increased its stake in Salesforce by almost 50% to 1.3 million shares as of June 30. The activist investor had previously boosted its stake by 52% in Q1. Salesforce shares have fallen nearly 30% this year and 9% over the past 12 months. Starboard has argued the company could become more efficient and profitable.
In a significant move, activist investor Starboard Value has increased its stake in Salesforce by nearly 50%, owning 1.3 million shares as of June 30, 2025. This latest purchase follows a 52% increase in the first quarter of this year [1]. The move comes amidst a notable decline in Salesforce's stock price, which has fallen by nearly 30% year-to-date and 9% over the past 12 months [3].Starboard Value, known for its aggressive investment strategies, has previously pushed Salesforce to improve operational efficiency and profitability. The activist investor's latest stake increase reflects its belief that Salesforce can still be made more efficient and profitable, despite the recent stock price decline [1]. This stance is echoed by Jeffrey Smith, the Chief Executive of Starboard, who has expressed confidence in Salesforce's potential for improvement [1].
Salesforce's stock performance has been under scrutiny due to its AI strategy and acquisition plans. The company's AI-powered offerings, such as Service Cloud and Agentforce, are expected to drive growth, but some analysts have questioned the acquisition strategy and growth momentum [3]. The upcoming earnings report on September 3 will be closely watched to see if Salesforce's AI strategy can reverse its stock decline [3].
The activist investor's push for efficiency and profitability may lead to a combative environment similar to the one experienced in 2022, when Salesforce faced intense pressure from a number of activist investors [1]. However, Salesforce has shown resilience in the past, and its ability to navigate the current challenges will be a key factor in determining its future performance.
References:
[1] https://www.salesforceben.com/activist-investor-starboard-buys-50-more-salesforce-stock/
[2] https://www.ainvest.com/news/starboard-raises-stake-pfizer-salesforce-exits-news-corp-2508/
[3] https://www.ainvest.com/news/salesforce-ai-growth-engine-mixed-bag-investors-2508/
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