5 Best Tech Stocks for the Next 5 Years

3. Salesforce Inc (NYSE:CRM)

Number of Hedge Fund Investors: 122

CRM company Salesforce Inc (NYSE:CRM) is one of the top tech stocks to buy for the next five years according to UBS. UBS thinks Salesforce Inc (NYSE:CRM) will continue to benefit from modest margin expansion, taking opportunities to upsell to its customer base.

Earlier this month, Baird analyst Rob Oliver said in a report that Salesforce Inc (NYSE:CRM) has an “attractive” risk-reward profile” heading into 2024 as front office spending will be better than expected.

“While macro continues to pressure seat-based software, we could potentially see upside from: price increases; potential return of front office spending, and crisper sales execution,” Oliver said.

Polen Focus Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2023 investor letter:

“In the fourth quarter, the top relative and absolute contributors to the Portfolio’s performance were Netflix, ServiceNow, and Salesforce, Inc. (NYSE:CRM).

Salesforce has continued to grow its revenues at what we see as a healthy rate despite market concerns about the impact of the weaker macroeconomy on its business and penetration rates in its core CRM offering. Even its most mature and largest offerings, Sales Cloud and Service Cloud, are still growing revenue at double-digit rates. In addition, management realized that their cost structure, especially in salespeople, had gotten too bloated. Over the past year and a half, the company has run a much more streamlined expense structure that has led to strong operating margin expansion and earnings growth. Importantly, we do not feel Salesforce has cut into its innovation or sales muscle through these cost cuts but has eliminated unnecessary excess fat from the organization.”