5 Cloud Computing Stocks to Watch As AI Arms Race Is Underway

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

Number of Hedge Fund Holders: 136

Upside Potential: 12.61%

Analyst Price Target: $239.10

Based in San Francisco, California, salesforce.com, inc. (NYSE:CRM) is an application software company. It is a leading cloud computing provider, offering businesses a variety of applications like CRM, business analytics, and more.

We saw salesforce.com, inc. (NYSE:CRM) in the portfolios of 136 hedge funds during the first quarter, with a total stake value of $9.1 billion.

An Overweight rating alongside a $248 price target were maintained on salesforce.com, inc. (NYSE:CRM) shares on June 13 by Piper Sandler’s Brent Bracelin.

The Ithaka Group made the following comment about salesforce.com, inc. (NYSE:CRM) in its first-quarter 2023 investor letter:

“Salesforce, Inc. (NYSE:CRM) is the largest pure-play cloud software company, holding a leading market share in customer relationship management applications and a top-five market share position in the company’s other clouds (Marketing, Service, Platform, Analytics, Integration, and Commerce). The company’s software subscription term-license model differs from the traditional perpetual-license software model in two respects: (1) the software is hosted on centralized servers and delivered over the internet, as opposed to traditional enterprise software that is loaded directly onto customers’ hard drives or servers; and (2) the revenue model is subscription-based, typically charging monthly fees per user as opposed to charging one-time licensing fees. The stock’s strong relative performance followed a strong F4Q23 earnings release that easily beat Street expectations on the top- and bottom-lines. In addition to the beat, management announced a number of initiatives that activist investors have been clamoring for, specifically a halt to large M&A transactions and a focus on operating profitability.”