5 Best Cloud Stocks To Buy Now

2. Salesforce.com, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 119 

Salesforce.com, Inc. (NYSE:CRM) is one of many tech firms that have seen a broad correction in share price over the past few weeks as investors prepare for a rise in interest rates and a shift towards value plays. However, analysts remain bullish on Salesforce.com, Inc. (NYSE:CRM) for the long-term and have advised investors to buy the dip, arguing that the fundamentals of the firm remain strong, revenue growth looks likely to continue for years to come, and the overall growth profile of Salesforce.com, Inc. (NYSE:CRM) is unique to the cloud industry. 

One of the reasons why analysts are this bullish on Salesforce.com, Inc. (NYSE:CRM) stock is because the company has a long history of smooth organic growth and aggressive acquisitions to keep pace with market developments. Salesforce.com, Inc. (NYSE:CRM) also spends heavily on research and development. 

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Salesforce.com, Inc. (NYSE:CRM) was one of them. Here is what the fund said:

“We added to our software-as-a-service (SaaS) exposure with the initiation of SaaS leader salesforce.com, which develops software for customer relationship management (we added Workday, which enterprise resource planning applications, last quarter). Saleforce.com is well-positioned in the most attractive end markets in software and will benefit from secular drivers such as remote work and the digital transformation. Salesforce.com is a sustainability leader as well, with a commitment to carbon-neutral cloud, toward which it has set a goal of 100% renewable energy for global operations by fiscal year 2022. The company has a strong focus on equality, in terms of equal rights, pay, education and opportunity. As a data company it has been leading on workforce disclosures and seeks to have 50% of its U.S. workforce made up of underrepresented groups by 2024.”