8. Salesforce, Inc. (NYSE:CRM)
10-Year Revenue Growth: 22.04%
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) is a leading customer relationship management (CRM) company that helps businesses manage their interactions with customers. It does so through a cloud-based platform called Customer 360, which integrates marketing, sales, analytics, and AI to ensure smooth customer relationship management. The company has recently launched its AI-powered platform called Agentforce, a cutting-edge platform designed to create and manage autonomous AI agents that can perform various business functions.
On January 23, Bradley Sills, analyst at BofA reiterated his Buy rating on the stock, while maintaining his price target of $440. The analyst noted that even after a strong performance in 2023 and 2024, where the stock gained 98.5% and 27.1% respectively, Salesforce, Inc. (NYSE:CRM) remains undervalued compared to its peers. Bradley believes that this combined with 12% to 13% year-over-year revenue growth expectation for the second half of 2026, driven by Agentforce and strong spending makes the stock a Buy for high returns.
During the fiscal third quarter of 2024, Salesforce, Inc. (NYSE:CRM) grew its revenue by 8% year-over-year to reach $9.44 billion, driven by its competitive Agentforce platform. Moreover, on December 12, the company introduced the next version of its platform called Agentforce 2.0, a significant upgrade to its digital labor platform aimed at creating a limitless workforce powered by autonomous AI agents. The upgraded version includes a comprehensive library of pre-built skills that allow businesses to quickly customize AI agents for specific tasks. These skills span across various applications, including CRM, Slack, and Tableau, making it easier for teams to deploy agents without extensive setup time. It is one of the best stocks to buy for high returns in 2025.
Montaka Global Investments stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
