5 Best Reddit Stocks To Invest In

2. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 116

Salesforce, Inc. (NYSE:CRM) is a San Francisco, California-based cloud-based provider of customer relationship management (CRM) software.

One of the reasons Salesforce, Inc. (NYSE:CRM) is considered one of the best Reddit stocks is because of the company’s $10 billion share buyback program. The Reddit community has taken note of the possibility that New York-based hedge fund Starboard Value LP would take a significant stake in the company in the near future. The hedge fund intends to find substantial value in Salesforce, Inc. (NYSE:CRM) after it has lost 40% of its value in the last year despite being a market leader. Furthermore, Salesforce, Inc. (NYSE:CRM) offers a long-term growth profile and an opportunity to expand margins. The hedge fund thinks that the stock price performance does not reflect the strong market leadership position of Salesforce, Inc. (NYSE:CRM).

Here’s what Oakmark Funds said about Salesforce, Inc. (NYSE:CRM) in its Q3 2022 investor letter:

“Salesforce, Inc. (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software over the past 20 years. The company earns 80% gross margins and grows 20% organically. Plus, virtually all of its revenue is recurring. We see Salesforce as a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability and capital return, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 3.9x next year’s revenues represents a significant discount compared to publicly traded peers and recent private market values in the software space that have similar growth profiles. We view this discount as an opportunity to invest in a great business at a good value.”

Salesforce, Inc. (NYSE:CRM) was held by 116 hedge funds at the end of Q2 2022.