5 Most Overvalued Companies According to the Media

4. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 122

Salesforce, Inc. (NYSE:CRM) has enjoyed huge gains this year thanks to the AI-fueled rally that helped many tech stocks which managed to sell the AI buzzword to investors. Salesforce, Inc. (NYSE:CRM) was quick to announce AI-based features integration with its CRM platforms.  Salesforce, Inc. (NYSE:CRM) shares have gained about 67% over the past one year. Salesforce, Inc. (NYSE:CRM)’s PE ratio is 140 as of November 21. Piper Sandler in October sounded concerns around a few enterprise software stocks based on what it believes are overly optimistic growth estimates. Salesforce, Inc. (NYSE:CRM) was one of the stocks the firm downgraded.

“While we are encouraged that [software] sector valuations and growth could be nearing a bottom, we have less confidence in acceleration potential,” analyst Piper Sandler’s Brent Bracelin wrote in an investor note.

As of the end of the second quarter of 2023, 122 hedge funds reported owning stakes in Salesforce, Inc. (NYSE:CRM), as per Insider Monkey’s database of elite hedge funds.

Harding Loevner Global Equity Strategy made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q2 2023 investor letter:

“Salesforce, Inc. (NYSE:CRM), a company we’ve owned since 2019, recently added ChatGPT-like capabilities onto its existing Al module, Einstein, to support its internal sales efforts and customer-facing software. For example, Einstein GPT can help generate marketing emails tailored to specific clients by using Salesforce’s customer database and past email correspondence to learn the most effective approach for each client. Einstein GPT is also different from off-the-shelf LLMS in three important ways: It keeps personal identifiable information private and secure, compared with external tools that retain anything a user enters. It employs the latest data in Salesforce’s system, as opposed to the sometimes-stale public data that train generic models. And generative Al capabilities can be integrated with other Salesforce offerings; the company has already introduced Slack GPT and Tableau GPT, Al-equipped versions of its workplace collaboration and analytics tools.”