David Tepper Initiated Buying These 5 Stocks for the Rest of 2022

3. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 116

Salesforce, Inc. (NYSE:CRM) is a California-based cloud computing, enterprise software, and consulting company. As of Q2 2022, 116 hedge funds held bullish positions in the company, compared to 114 in the previous quarter.

Salesforce, Inc. (NYSE:CRM) holds a competitive advantage in the customer relationship management software market. At the end of 2021, the company had 41.4% of the segment’s market share, with its closest competitor, Microsoft Corporation (NASDAQ:MSFT), holding an 11.8% market share. The company was recently named the number one CRM company for the 9th year in a row. Furthermore, the company has shown consistent growth and revenue stability over the past few years. In 2020, the company generated $16 billion in revenue and expects to generate $31 billion in 2023. The stability comes from its annual subscription model, which accounts for 90% of the revenues generated by the company.

Appaloosa Management added 200,000 shares of Salesforce, Inc. (NYSE:CRM) worth $33 million to its portfolio in Q2 2022. The company represents a 2.07% concentration in the firm.

Here is what Vulcan Value Partners had to say about Salesforce, Inc. (NYSE:CRM) in its Q1 2022 investor letter:

“Salesforce.com Inc. is the dominant provider of customer relationship management software and technology. Salesforce has high retention rates, pricing power, high free cash flow, and a competitive moat. The company continues to execute well. Margins decreased slightly during the fourth quarter but continue to be on path for material expansion over the long term. Salesforce is seeing increased spending as employees are returning to the office, and we believe the global pandemic has only improved its prospects.”