6. Salesforce.com Inc. (NYSE:CRM)
Number of Hedge Fund Investors: 117
Jim Cramer reported that during his one-on-one interview at Dreamforce in San Francisco, Salesforce.com Inc. (NYSE:CRM) CEO Marc Benioff criticized other companies in the artificial intelligence space. He specifically called out Microsoft Corporation (NASDAQ:MSFT), highlighting the billions spent on its AI tool, Copilot, which he deemed wasteful. Benioff emphasized that AI should serve as an agent capable of making informed decisions based on user data.
“Salesforce CEO Marc Benioff called out all other purveyors of artificial intelligence in my one-on-one interview at Dreamforce in San Francisco. He took a direct shot at Microsoft, noting the billions of dollars wasted on its AI tool Copilot. You want to use AI as an agent that can understand decisions based on your data, he said.”
Salesforce.com, Inc. (NYSE:CRM)’s positive outlook is backed by strong Q2 2024 earnings, with $8.6 billion in revenue, a 17% increase from last year, and a net income of around $1.2 billion. This success comes from significant growth in subscription and support revenue, driven by high demand for its cloud solutions. As more businesses go digital, Salesforce.com, Inc. (NYSE:CRM)’s strong position in Customer Relationship Management (CRM) allows it to capture a larger market share.
Salesforce.com, Inc. (NYSE:CRM) is also investing heavily in artificial intelligence through its Einstein platform, which enhances customer experiences and streamlines sales, especially with new generative AI features. Strategic acquisitions like Slack and Tableau have expanded its product range, improving collaboration and analytics.
With a diverse and growing customer base, Salesforce.com, Inc. (NYSE:CRM) appeals to both small businesses and large enterprises. Salesforce.com, Inc. (NYSE:CRM) focus on sustainability and social responsibility resonates with market trends, enhancing its reputation. Recent innovations in product features and an expanded partner ecosystem highlight Salesforce.com, Inc. (NYSE:CRM)’s commitment to improving user experience and collaboration, showcasing its growth potential 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.”
