5 Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman

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

Value: $509,304,000
No. of hedge Fund Holders: 97

salesforce.com, inc. (NYSE: CRM) is a leading provider of CRM services and solutions. CRM has remained one of the most lucrative segments in the last decade and should remain that way as the roots of digitization continue to spread.

Salesforce generated $5.42 billion in quarterly revenue in Q3 2020, a 20% gain compared to the revenue figure reported in Q3 2019. The performance favored a revenue guidance revision for FY21 to $21.11 billion from $21.10 billion. It also raised its Q1 FY22 revenue guidance to$5.715 billion from the previous $5.680 Billion. 

Oakmark Equity and Income Fund, in its Q1 2021 investor letter, mentioned salesforce.com, inc. (NYSE: CRM). Here is what Oakmark Equity and Income Fund has to say about salesforce.com, inc. in its letter:

“Salesforce was the final new portfolio addition. The company is executing a tried-and-true strategy in the software space of buying young, best-of-breed software companies and then driving these products into their massive installed base. Companies like Tableau, ExactTarget and Mulesoft have considerably more reach in the hands of Salesforce than they could have achieved as standalone companies. However, when Salesforce announced a deal to buy Slack Technologies, the market reduced Salesforce’s pre-announcement market capitalization by roughly $40 billion, effectively offering investors the opportunity to get Slack for free. We believe management should be given the benefit of the doubt. Slack has the potential to be a game-changing technology with a huge addressable market, and management’s track record on acquisitions has been superb. We estimate that the company’s shares now trade at a material discount to industry peer Microsoft, despite showing nearly twice the growth, giving investors the chance to own a top-tier software company at a bottom-tier multiple.”