Top 5 Stocks to Buy According to Billionaire Steve Cohen

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1. salesforce.com, inc. (NYSE:CRM)

Point72 Asset Management’s Stake Value: $534,935,000

Percentage of Point72 Asset Management’s 13F Portfolio: 2.34%

Number of Hedge Fund Holders: 119

salesforce.com, inc. (NYSE:CRM) is a cloud-based software company from California, specializing in customer relationship management service, and offering enterprise applications that enable marketing automation, data analytics, and app development. salesforce.com, inc. (NYSE:CRM) is the top stock to buy according to billionaire Steve Cohen, with his hedge fund owning a $534.9 million stake in the company, which accounts for 2.34% of his total 13F portfolio. 

In the third quarter earnings report published on November 30, salesforce.com, inc. (NYSE:CRM) posted an EPS of $1.27, beating estimates by $0.35. The revenue jumped 26.65% year-over-year, reaching $6.86 billion, outperforming estimates by $59.66 million. 

Evercore ISI analyst Kirk Materne kept an Outperform rating and a $375 price target on salesforce.com, inc. (NYSE:CRM) on December 22. The analyst stated that heading into 2022, the combination of higher interest rates, “still fairly rich multiples”, and a much bigger pool of software stocks could continue to create intense volatility, especially among the higher-valuation names, and that he expects that investors will ultimately revert to names that can deliver durable growth and have pricing power. In that context, he calls salesforce.com, inc. (NYSE:CRM) his top pick for 2022 as he believes the stock is trading at a discount given its growth profile at scale.

Matrix Capital Management is one of the largest salesforce.com, inc. (NYSE:CRM) stakeholders as of Q3 2021, with 2.62 million shares worth $711.2 million. Overall, 119 hedge funds in the database of 867 elite funds maintained by Insider Monkey as of the third quarter were bullish on salesforce.com, inc. (NYSE:CRM), up from 108 funds in the prior quarter. 

Here is what Vulcan Value Partners has to say about salesforce.com, inc. (NYSE:CRM) in its Q3 2021 investor letter:

“Salesforce.com Inc., a material contributor for the quarter, is the dominant provider of customer relationship management (CRM) software and technology. Salesforce has high retention rates, pricing power, a large and growing addressable market, high free cash flow, and a competitive moat. The company continues to execute well, and we believe the global pandemic has only improved its prospects and future returns.”

You can also take a look at Top Cyclical Stocks To Buy Now and 10 Stocks to Buy and Hold According to Bill Gates

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