5 Growth Stocks in Billionaire George Soros’ Portfolio

4. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 114

Soros Fund Management’s Holdings: $55,904,000

Percentage of Soros Fund Management’s Portfolio: 0.85%

Stock Price as of June 30: $171.46

Return since March 31: -25.7%

Salesforce, Inc. (NYSE:CRM) is a San Francisco, California-based corporation providing cloud-based leading customer relationship management (CRM), marketing automation, analytics, and application development solutions. Around 150,000 organizations globally employ the services of Salesforce, Inc. (NYSE:CRM).

Salesforce, Inc. (NYSE:CRM) claims to be the fastest-growing enterprise software company and aims to reach annual revenue of $50 billion by 2026. The recent sell-off across the tech sector has caused the stock price to crash from $306 to the current level.

During Q1 2022, Salesforce, Inc. (NYSE:CRM) saw its revenue increase by 24% YoY to $7.41 billion, with an impressive gross profit margin of nearly 73%. However, the operating profit margin was recorded at 0.77%. This was because Salesforce, Inc. (NYSE:CRM) had an outlay of $4.8 billion on research & development. This strategy has been employed by other tech giants, and it has resulted in healthier profits in the long term.

In its Q1 2022 investor letter, Vulcan Value Partners shared its outlook on Salesforce, Inc. (NYSE:CRM). Here’s what the firm said:

“Salesforce.com Inc. is the dominant provider of customer relationship management software and technology. Salesforce has high retention rates, pricing power, high free cash flow, and a competitive moat. The company continues to execute well. Margins decreased slightly during the fourth quarter but continue to be on path for material expansion over the long term. Salesforce is seeing increased spending as employees are returning to the office, and we believe the global pandemic has only improved its prospects.”

Overall, 114 hedge funds reported owning a stake in Salesforce, Inc. (NYSE:CRM) as of Q1 2022.