5 Best Buy-the-Dip Tech Stocks According to Billionaire Ken Fisher

4. salesforce.com, inc. (NYSE:CRM)

Number of Hedge Fund Holders: 110

Fisher Asset Management’s 13F Portfolio: 1.9%

Fisher Asset Management’s Stake Value: $3.23 billion

salesforce.com, inc. (NYSE:CRM) is the world’s leading cloud-based customer relationship management software, which is used to administer and analyze a company’s interactions with its customers. Its shares are down 39% as of May 19, but Ken Fisher knows how to spot a market leader trading below value and increased his stake in the company by 5% in the first quarter, thereby consisting of 15.23 million shares valued at $3.23 billion.

Roth Capital analyst Richard Baldry on May 18 upgraded salesforce.com, inc. (NYSE:CRM) to ‘Buy’ from ‘Neutral’ with a $242 price target. Mizuho analyst Gregg Moskowitz also gave the firm a ‘Buy’ rating with a price target of $225, down from $295. Although the sell-off in tech has gotten worse in recent weeks, Moskowitz sees good overall demand in software, particularly for digital transformation and/or security projects. He reduced the price target to reflect the uncertainty in the current macro backdrop.

110 hedge funds were long salesforce.com, inc. (NYSE:CRM) at the end of the fourth quarter of 2021, as compared to 119 hedge funds at the end of the third quarter. The total value of Q4 hedge fund holdings was recorded at $11.45 billion.

Investment firm Oakmark Fund talked about various stocks in its Q1 2022 investor letter, and one of them was salesforce.com, inc. (NYSE:CRM). Here’s what the fund said:

“Over the past 20 years, Salesforce (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software. CRM earns 80% gross margins, grows 20% organically and virtually all of its revenue is recurring. It’s 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, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 5x next year’s revenues represents a significant discount compared to publicly traded comparables and private market values in the software space. We view this discount as an opportunity to invest in a great business at a good value.