We came across a bullish thesis on Salesforce, Inc. (CRM) on Disruptive analytics’ Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on CRM. Salesforce, Inc. (CRM)’s share was trading at $317.85 as of Jan 10th. CRM’s trailing and forward P/E were 52.36 and 28.49 respectively according to Yahoo Finance.
A close-up of a computer monitor, displaying complex information management software.
2025 will be a defining year for AI, as it shifts from a speculative concept to a core driver of productivity and business transformation. Salesforce, a leader in customer relationship management (CRM), is uniquely positioned at the forefront of this change, acting as a bellwether for AI adoption in the business world. Given its deep ties to customer engagement and data-driven processes, if Salesforce’s clients—those who are already at the cutting edge—fail to embrace AI agents to improve efficiency, it raises the question of who will. This sets the stage for Salesforce’s revenue performance in 2025 to serve as a crucial litmus test for AI’s role in reshaping business operations.
The journey to AI integration is not instantaneous. It’s a gradual process, requiring both technological innovation and cultural adaptation. For Salesforce, this evolution is reflected in its work with Agentforce 2.0, an AI-driven platform that automates previously time-consuming tasks such as customer support and recruitment. Notably, Agentforce has reduced human intervention in daily support requests by half, allowing customer support teams to focus on more strategic priorities. Additionally, the platform has streamlined recruitment for Adecco, where AI agents sift through millions of resumes, significantly reducing manual workloads and enhancing recruiter efficiency. The same technology has found applications in healthcare with Pristina Health, where AI agents monitor patients’ health in real time, leading to better patient outcomes and reduced hospital readmissions.
These success stories highlight the immediate advantages that AI agents bring to businesses. By automating routine tasks, companies can free up valuable time for teams to engage in more high-value activities. However, Salesforce emphasizes that the full potential of AI will be realized over a longer period, with three years being the typical timeline for businesses to fully integrate AI into their operations and see maximum benefits. This slow burn presents both an opportunity and a risk for investors, as early AI successes could be overshadowed by the need for long-term strategic adaptation.
The stock market is divided on Salesforce’s future prospects. Some analysts have raised their price targets, citing the success of Agentforce as a driver for future growth. Others are more cautious, noting economic uncertainties and a potential slowdown in IT spending that could negatively affect Salesforce’s growth trajectory. They also express concerns that CRM may not fully capitalize on the AI space without acquiring additional companies with established AI expertise.
As we move through 2025, Salesforce’s performance will be a key barometer for the broader market’s response to AI. If CRM continues to drive growth through AI adoption, it will provide a clear signal that AI is truly becoming a mainstream business tool. Investors should watch CRM closely, as its performance will offer critical insights into the pace of AI integration across industries and its ability to reshape business models and productivity.
Salesforce, Inc. (CRM) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 116 hedge fund portfolios held CRM at the end of the third quarter which was 117 in the previous quarter. While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some 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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Disclosure: None. This article was originally published at Insider Monkey.