Is it Still a Good Move to Invest in Salesforce (CRM)?

Vulcan Value Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. All five of the fund’s strategies trailed their respective benchmarks during the quarter. According to the fund, they ‘place no weight on short-term results, good or bad, and neither should you’. Vulcan Value Partners have made and will continue to make decisions that negatively impact short-term performance when it thinks it can improve its long-term returns and lower risk. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Vulcan Value Partners mentioned Salesforce, Inc. (NYSE:CRM) and explained its insights for the company. Founded in 1999, Salesforce, Inc. (NYSE:CRM) is a San Francisco, California-based cloud-based software company with a $154.6 billion market capitalization. Salesforce, Inc. (NYSE:CRM)  delivered a -38.77% return since the beginning of the year, while its 12-month returns are down by -30.47%. The stock closed at $155.60 per share on May 19, 2022.

Here is what Vulcan Value Partners has 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.”

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Our calculations show that Salesforce, Inc. (NYSE:CRM) ranks 12th on our list of the 30 Most Popular Stocks Among Hedge Funds. Salesforce, Inc. (NYSE:CRM) was in 110 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 119 funds in the previous quarter. Salesforce, Inc. (NYSE:CRM) delivered a -22.21% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Salesforce, Inc. (NYSE:CRM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.