2. Salesforce Inc (NYSE:CRM)
Number Of Hedge Fund Investors: 162
Jim Cramer was recently asked about Salesforce Inc (NYSE:CRM). Here is what he said:
“This happens now. We own Salesforce. We started buying it when it was at eight bucks. It’s had a big run. I don’t blame you one bit for feeling like, ‘Ouch, that one’s down a lot.’ All I can do is say, and I’ll say it on Thursday, is this: it’s worth buying more and getting a better average. Why? Because I think the company’s going to have a blowout quarter.”
Salesforce’s latest quarterly results were mixed. It reported revenue of $9.99 billion, missing estimates by about $50 million. For Q1, the company forecasts a year-over-year growth between 6% and 7%. For FY 2026, Salesforce expects total revenue between $40.5 billion and $40.9 billion, reflecting a 7%-8% year-over-year growth. This implies a 1 percentage point deceleration in growth compared to FY 2025. CRM bulls are counting on the Agentic AI market but that catalyst could take a while to realize.
Montaka Global Investments stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
