We came across a bullish thesis on Salesforce, Inc. (CRM) on Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on CRM. Salesforce, Inc. (CRM)’s share was trading at $331.43 as of Dec 3rd. CRM’s trailing and forward P/E were 54.60 and 29.67 respectively according to Yahoo Finance.
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The rise of AI agents marks a transformative shift in the AI landscape, moving beyond co-pilots reliant on user prompts to autonomous systems capable of planning, executing, and adapting based on real-time data. These agentic solutions are reshaping industries by automating complex, multi-step tasks defined by user goals, signaling a new frontier in AI’s evolution. While prior AI investment narratives centered on hardware and cloud infrastructure, the advent of agents is reinvigorating software companies, spotlighting their role in this burgeoning trend.
Salesforce (CRM) exemplifies this shift under CEO Mark Benioff’s leadership, embracing AI agents as a core strategy in its evolution into an AI-as-a-Service (AIaaS) leader. This strategic pivot has resonated with investors, as evidenced by CRM’s 28% stock increase this fall, fueled by confidence in its agent-driven vision. The company’s recent launch of Agentforce showcased its AI capabilities, positioning agents as transformative across customer service, marketing, analytics, and sales. By delivering hyper-personalized customer interactions and tailored solutions, CRM aims to redefine customer experiences while enhancing operational efficiency. However, this ambitious narrative requires tangible results to sustain investor enthusiasm.
Despite CRM’s bold transformation, revenue growth has slowed in recent quarters, creating pressure ahead of its upcoming Q3 earnings announcement. Investors will be closely watching for signs of stabilizing growth and positive guidance, critical indicators of the company’s ability to capitalize on its AI initiatives. A strong Q3 performance could validate CRM’s strategic shift and drive further investor confidence, while underperformance risks eroding the momentum behind its AI story. As the agentic era unfolds, CRM’s ability to deliver measurable outcomes will be pivotal, both as a validation of its AI strategy and as a bellwether for broader trends in the AI-driven software industry.
Salesforce, Inc. (CRM) is on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 116 hedge fund portfolios held CRM at the end of the third quarter which was 117 in the previous quarter. While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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