5 Cloud Software Stocks with Strong Growth Potential

2. Salesforce.com,  Inc. (NYSE: CRM)

Number of Hedge Fund Holders: 108 

Year-on-Year Revenue Growth: 21.46% 

Salesforce.com,  Inc. (NYSE: CRM) is placed second on our list of 10 cloud software stocks with strong growth potential. The firm provides cloud computing solutions and is headquartered in California.

On August 26, investment advisory RBC Capital assumed coverage of Salesforce.com,  Inc. (NYSE: CRM) stock with an Outperform rating and a price target of $310, noting the firm had delivered strong quarterly results with margin upside. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Salesforce.com,  Inc. (NYSE: CRM)  with 13.4 million shares worth more than $3.2 billion.

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.”