We recently compiled a list of the 10 Best Cloud Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Salesforce Inc (NYSE:CRM) stands against the other cloud stocks.
Based on a report by MarketsandMarkets, the global cloud industry in 2025 is projected to grow by 15.1% to $1,256.8 billion. While 2024 was marked by high adoption by the BFSI sector, the year ahead should see applications being developed that meet the unique specifications of each industry. North America and Europe should capture the bulk of the market size but APAC is expected to register the fastest growth. The integration of AI with cloud platforms accompanied by new service models is another key development expected to shape this industry.
Cloud ETFs have generated generous returns of 2.74%, 28.54% and 11.00% for 1-month, 6-month and 1-year tenors. One would assume that the underlying stocks would continue to perform well, propelled by strong industrial tailwinds.
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For this article we picked 10 cloud stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.
Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Investors: 116
Salesforce Inc (NYSE:CRM) is a company that has leveraged cloud technology to improve customer relationship management. Sales Cloud by CRM is a cloud-based solution that can be used by large enterprises and smaller businesses.
CRM expects total sales of $10 billion, implying a 7-9% y-o-y growth, driven by strong demand for its cloud services like Sales Cloud. The launch of Agent Force, an autonomous AI agent has been instrumental in CRM closing more details. There have been more than 200 Agent Force deals in Q3 and major players like FedEx, Accenture and IBM already use the digital labor system. A raised full-year revenue guidance bodes well as the company gears up for a global expansion. It has pledged to upskill 30,000 individuals in Saudi Arabia and plans to invest $500 million in Argentina. By partnering with HCL, CRM is also looking to modernize its cloud infrastructure, particularly in the finance industry.
Overall CRM ranks 4th on our list of the best cloud stocks to buy according to hedge funds. While we acknowledge the potential of 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
