Salesforce Borrows $25B for Buyback, Raising Wall Street Concerns

Salesforce has borrowed $25 billion to fund an accelerated share repurchase, sparking concerns on Wall Street about the company's financial strategy. According to BeInCrypto, the move has shifted focus from Salesforce's strong Q1 earnings, which saw a 13% revenue increase to $11.1 billion, to its balance sheet. The debt-funded buyback has led to a significant rise in quarterly interest expenses, now at $317 million, impacting free cash flow growth guidance, which was cut to 4-5% from 9-10%. Barclays has reduced its price target to $236, reflecting discomfort with the buyback strategy.