Salesforce: You Might Wish You Bought More Now

Summary

  • Salesforce still trades at a significant valuation discount over its long-term average.
  • SaaS rivals like Palantir have spurred significant gains, while CRM struggles for traction.
  • Management recognizes the urgency to embed Agentic AI and accelerate AI ARR growth, but execution remains the key to regaining investor confidence and valuation re-rating.
  • While AI-first peers like OpenAI and Palantir appear to be gaining clout, the market seems to have written off Salesforce's ability to compete.
  • With the market pricing in steep pessimism on CRM now, you might want to grab hold of the opportunity to double down.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

The new Salesforce corporate headquarters together with Salesforce East and West towers visible in the background

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Salesforce: Still Not Given Enough Respect

Salesforce (NYSE:CRM) investors must have felt aggrieved as the stock has failed to regain traction while still hovering well below its 2024 peak. I also find it an enigma, as software investors (

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRM, MSFT, IGV 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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