1. Salesforce, Inc. (NYSE:CRM)
On Thursday, Cramer said that enterprise software stocks like Salesforce, Inc. (NYSE:CRM) are loved presently and commented that buying enterprise software stocks should be done when they come down.
“Let’s start with love: This market [is] once again enamored with those enterprise software stocks that are so expensive… Now these have all had parabolic moves, up double digits this month, even if they all pulled back a little bit today. If you’re selling software to big businesses, you can do no wrong in this market. But man, speaking as a big believer in Salesforce, we’ve owned it for the Charitable Trust forever, I think the stock’s been on an unsustainable tear. I think it needs a breather. The darn thing’s gone from $243 to $331 in a little more than two months. Again, I adore Salesforce. I just wish the stock would digest its gains here because the kind of straight up rally makes me nervous… Now, enterprise software does tend to not have much Chinese exposure, which is a positive heading into Trump’s second term. How much is that worth? Not clear. At the CNBC Investing Club meeting, Jeff Marks and I talked about which companies could be helped or hurt by Trump 2.0. Enterprise software, it came out unscathed. I think that should put a premium on enterprise software stocks. But at this point, enough is enough. I say let ’em come down and then you can buy.”
Salesforce (NYSE:CRM) provides a comprehensive customer relationship management platform that helps businesses manage sales, customer service, marketing, analytics, and commerce, with integrated tools to enhance customer experiences and workflows. In September, it introduced Agentforce, a new suite of autonomous AI agents designed to assist employees by automating routine tasks across service, sales, marketing, and commerce. The AI agents are built to analyze data, make decisions, and optimize marketing campaigns, offering a potential boost in productivity for businesses.
By automating repetitive tasks, businesses can focus more on strategic initiatives, which could lead to an increase in both customer retention and spending. In September, the company announced that it reached a definitive agreement to acquire Own Company, a prominent provider of data protection and management solutions. Own helps organizations ensure the security, availability, and compliance of their critical data while unlocking new opportunities for deeper insights.
As part of the agreement, Salesforce (NYSE:CRM) will acquire Own for approximately $1.9 billion in cash, adjusted for the value of roughly 10% of the shares that Salesforce currently owns. The transaction is expected to close in the fourth quarter of the company’s fiscal year 2025. Own, a Salesforce AppExchange partner since 2012 and a part of the Salesforce Ventures portfolio, has evolved beyond its initial focus on backup and recovery. It serves nearly 7,000 customers, helping them safeguard their most important data.
While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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