Salesforce: Why I Have Strong Conviction In This Stock
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Johnny Zhang, CFA2.68K FollowersFollow5ShareSavePlay(9min)CommentsSummarySalesforce demonstrates early success of the agentic AI strategy and has reached a key growth inflection based on positive net new annual order value.The 40 Rule record will continue in FY2027, showing a strong balance between growth and margins.Agentforce and Data 360 platforms are accelerating total revenue growth, with ARR up 200% YoY and seeing 60% conversion from existing customers.The decades-long enterprise data edge will become resilient to AI disruptions, helping customers smoothly integrate data, and increasing switching costs.CRM stock is trading at distressed valuation levels, with a 14x non-GAAP P/E TTM and 10x P/CF TTM, well below defensive sectors multiples like utility and staples.
Getty Images Agentic AI Adoption Has Reached a Key Milestone Even strong 4Q earnings couldn't save Salesforce, Inc. (CRM) (CRM:CA). The stock slipped to a new 52-week low this week. It's now down 29% year-to-date, wiping out half ofThis article was written byJohnny Zhang, CFA2.68K FollowersFollowI'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction.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. 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.