13 Best Big Tech Stocks To Buy Now

10. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

Salesforce, Inc. (NYSE:CRM) is an information technology company based in San Francisco, California. It offers Customer Relationship Management technology.

Propelled by healthy growth, Salesforce, Inc. (NYSE:CRM) announced its revenue of $9.33 billion in the second quarter, up 8% year-over-year and exceeding analysts’ estimates by $100 million. Since the company is the leading provider of CRM services, it has an immense presence in this market and has been expanding its reach through big acquisitions for years. Despite this, Salesforce, Inc. (NYSE:CRM) is also ensuring that organic expansion is not put on the back burner for too long, so it has been authorizing share buybacks to boost EPS while also initiating a dividend.

The company does not expect generative AI to meaningfully boost its sales just yet since, for fiscal 2025, it forecasts revenue growth of only 8-9%. However, Salesforce, Inc. (NYSE:CRM) is still seeing expanding profit margins since in fiscal 2024, its operating margins have expanded to 30.5%, well above the 22.5% figure reported in fiscal 2023.

At the end of the second quarter, 117 hedge funds were long Salesforce, Inc. (NYSE:CRM), with a total stake value of $11.4 billion.

Mar Vista Investment Partners, LLC mentioned Salesforce, Inc. (NYSE:CRM) in its second-quarter 2024 investor letter:

“Salesforce, Inc.’s (NYSE:CRM) stock came under pressure in Q2 as the company modestly missed Street expectations for software bookings and reduced its FY2025 subscription revenue guidance to “around 10%” year-to-year growth from “greater than 10%.” We believe Salesforce is experiencing cyclical pressures as software demand across the industry is pressured at the margin. This has led to longer sales cycles; smaller deal sizes and budgets being allocated away from enterprise software to emerging areas like generative AI. We continue to believe that Salesforce will see a tailwind to demand from its generative AI offerings as many AI use cases are found in front office software like customer relationship management. This, coupled with Salesforce’s treasure trove of customer data, positions it well to exploit the evolution of next-generation AI offerings.”