We recently published Top 10 Analyst Calls on Trending Stocks You Shouldn’t Miss. Salesforce Inc (NYSE:CRM) is one of the major analyst calls.
Jim Cramer during a program on CNBC in May discussed the importance of trusting the honest leadership of companies and sticking to their core business thesis despite tough times. To prove his point, Cramer gave the example of Salesforce Inc (NYSE:CRM) CEO Marc Benioff:
“Something very similar happened with Marc Benioff, the bankable CEO of Salesforce, during the depths of the great recession. He’s another important Charitable Trust name from pretty much the get-go. He explained his cloud software company would be fine and we should just—well, he just said it’s going to be the future of the industry. He said there had been no real slowdown at all in his business, even though there was slowing everywhere else. He was right, and if you listened to him, you made a killing.”
Salesforce shares are down 24% so far this year. The company recently reported a decent quarter, but the stock fell amid weak guidance. For the third quarter, the company expects revenue between $10.24 billion and $10.29 billion, below the Wall Street estimates at the midpoint.
Mar Vista U.S. Quality Select Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q1 2025 investor letter:
“Salesforce, Inc.’s (NYSE:CRM) stock came under pressure in Q1 as investors grew concerned about the potential negative impact of trade tensions and tariffs on the global economy, as well as the current lack of monetization from AI-enabled software solutions. Despite these concerns, we remain confident in Salesforce’s strong competitive position, deep customer relationships, and its ability to monetize AgentForce, its newly launched generative AI-enabled chatbot designed to automate customer service tasks and significantly reduce costs compared to traditional call center support solutions.
As the largest provider of SaaS-based customer relationship management software globally, Salesforce possesses a vast repository of customer data. This data, when combined with generative AI solutions like AgentForce, can be mined for valuable insights and used to deliver enhanced customer outcomes. While AgentForce is still in its initial stages, it has already generated strong interest from both customers and global system integrators. Notably, Salesforce announced that approximately 5,000 customers are currently testing AgentForce, including around 3,000 paying customers. We continue to believe that Salesforce is well-positioned to monetize its AI offerings over time and expect the company to grow intrinsic value at a low double-digit rate.”
While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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