Salesforce: Don't Overthink This Buying Opportunity

Cyn Research
178 Followers
(9min)

Summary

  • Salesforce's recent stock dip is overdone; long-term investors should focus on stabilizing growth, margin expansion, and strong free cash flow.
  • Despite slowing revenue growth, Salesforce's AI-driven products and Informatica acquisition offer upside, while profitability is set to rise.
  • Valuation is attractive: CRM trades at a historically low P/FCF and is cheaper than peers, providing a margin of safety for new investors.
  • Risks exist from AI disruption and M&A, but Salesforce's market position, growth history, and capital returns make the current dip a compelling entry point.

salesforce

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Introduction

Since its all-time high in early December, Salesforce Inc. (NYSE:CRM) has dropped by approximately 28% despite reporting solid Q1 earnings.

I argue that long-term investors should not worry too much about recently

This article was written by

178 Followers
Hi! I'm a passionate investor who has been researching publically traded companies for over 6 years. My primary focus is on identifying great businesses at reasonable prices and holding them for the long term. While I have a slight bias toward technology companies, I maintain a broad perspective, including opportunities in crypto. I take a global approach to investing, occasionally seeking value beyond the U.S. market. Thanks for reading!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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