2. Salesforce.com Inc. (NYSE:CRM)
Number of Hedge Fund Investors: 117
Jim Cramer reports that KeyBanc believes Agentforce, a new initiative from Salesforce.com Inc. (NYSE:CRM), will require significant investment but will ultimately pay off. The analysts described it as a revolutionary approach to integrating AI. Barclays echoed this sentiment, stating that Agentforce will be a major success, especially given Salesforce.com Inc. (NYSE:CRM)’s extensive data resources.
“KeyBanc said that Agentforce is something that Club name Salesforce will spend a lot of money on and it will pay off. The analysts described it as a whole new way to accept AI. Barclays said Agentforce will be huge, too. Remember, Salesforce has all the data.”
Salesforce.com, Inc. (NYSE:CRM) has a promising outlook, bolstered by strong Q2 2024 earnings that reported $8.6 billion in revenue, a 17% increase from the previous year, and a net income of about $1.2 billion. Salesforce.com, Inc. (NYSE:CRM) success stems from notable growth in subscription and support revenue, driven by high demand for its cloud solutions. As more businesses transition to digital, Salesforce.com, Inc. (NYSE:CRM)’s strong foothold in Customer Relationship Management (CRM) positions it to capture a larger share of the market.
Salesforce.com, Inc. (NYSE:CRM) is making significant investments in artificial intelligence through its Einstein platform, enhancing customer experiences and streamlining sales processes, particularly with the introduction of new generative AI features. Strategic acquisitions like Slack and Tableau have broadened its product offerings, enhancing collaboration and analytics.
With a diverse and expanding customer base, Salesforce.com, Inc. (NYSE:CRM) serves both small businesses and large enterprises. Its commitment to sustainability and social responsibility aligns well with current market trends, boosting its reputation. Recent innovations in product features and a growing partner ecosystem further demonstrate Salesforce.com, Inc. (NYSE:CRM)’s dedication to enhancing user experience and collaboration, highlighting its potential for growth in the tech industry.
Ithaka US Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2024 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 weak relative performance followed its fiscal first quarter earnings announcement, where the company missed top-line and cRPO (current remaining performance obligations) estimates while also issuing weak forward guidance.”
