Cramer’s Morning Thoughts: 20 Stocks to Watch

4. Salesforce.com inc. (NYSE:CRM) 

Number of Hedge Fund Investors: 117

Salesforce.com, inc. (NYSE:CRM), a Club name, was upgraded to an “overweight” (buy) rating by Piper Sandler. The analysts believe that Salesforce.com, inc. (NYSE:CRM)’s free cash flow per share could more than double, reaching over $20 by fiscal 2029, compared to $9.65 in fiscal 2024. They also see significant potential in Salesforce.com, inc. (NYSE:CRM)’s artificial intelligence capabilities, which adds to its future growth prospects.

“Club name Salesforce was upgraded to an overweight buy at Piper Sandler. Analysts think free cash flow per share could double to more than $20 by fiscal 2029 from $9.65 in fiscal 2024. They also Like Salesforce’s artificial intelligence optionality.”

Salesforce.com, inc. (NYSE:CRM) is an attractive investment option due to its strong financial performance and commitment to innovation. In its Q2 2024 earnings report, Salesforce.com, inc. (NYSE:CRM) revealed revenue of $8.6 billion, a 10% increase from the previous year, along with a net income of $1.6 billion. This growth reflects effective cost management and a steady demand for its cloud-based customer relationship management (CRM) solutions, with subscription and support revenue rising by 11%.

A major factor driving this success is Salesforce.com, inc. (NYSE:CRM)’s investment in artificial intelligence through its Einstein AI platform, which enhances its products and provides advanced analytics. Recent acquisitions, including a prominent AI-driven analytics firm, have further strengthened its capabilities and competitive position. Additionally, partnerships with major tech companies have expanded its service integration, enhancing the overall customer experience. As businesses increasingly seek efficient CRM solutions in a digital-first world, Salesforce.com, inc. (NYSE:CRM) is well-equipped for ongoing growth, making it a compelling choice for investors.

Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2024 investor letter:

“Salesforce, Inc.’s (NYSE:CRM) growth continues to moderate, and investors question its prospect as it relates to AI. We remain confident that the company, which developed the original salesforce automation product and pioneered the SaaS (software as a service) delivery model, is well positioned to capitalize on emerging AI opportunities.”