SalesForce.com Inc. (CRM-N)

The collection of data is becoming more important especially for corporations. It does well in software that collects consumer info and consolidates it, and is a global leader in this field. It is becoming an operating system for the modern enterprise and is delivering recurring revenue from AI and the data cloud. Trades at a good valuation of 22 times earnings and has expanding margins. She sees 40% upside and gives it an 8 out of 10 fundamentally.

They've suffered because the results of their AI spend hasn't happened yet. It's starting to now. CRM dominates the market and doesn't face serious competition. She is seeing the enhancement in their software, which will result in better earnings.

CRM is like Uber in the $60s. Their last earnings were great. The CEO will focus on free cash flow and margins and growth. The market is completely missing this, expecting some sort of AI to take over what CRM is doing. Absurd. CRM is already using AI. Is unloved, caught in the hedgefund shorts. This can easily rally 20% after earnings.

He targets $325. It's puzzling that has lagged the market. They tried really hard with Einstein to bring out the agentic AI, but they discovered it needs some human intervention. Great management and aggressive sales and marketing. Is among his top 12 holdings.

A leader in software it is also a pioneer in staff models. It is evolving into an operating system for more modern enterprises and AI. It has a good valuation at 22 X earnings and she sees 36% upside. Through its share buybacks and dividends it is providing good shareholder returns. Although it is down 23% year-to-date she gives it a 9 out of 10.         Buy 51  Hold 10  Sell 2

Beat, raised, doing a (really accretive) acquisition at a reasonable multiple. Earnings were flat YOY, but revenues were up 7.6%. Reducing headcount by 10%. Guiding to 8-9% revenue growth. 

Dominant player. A stock you have to own, but has to be at the right price. (He's cheap, he wants to get it at a better price ;) Trades at 20x PE for 2027, with 13%. Better places to put capital to work. Try for 5-10% lower.

On the fence on this name. Back in the day it was a high-growth software company, but now lower growth (which happens as you get bigger). Recent deal is fine. But activists had identified ways to eke out more profit, company said no more M&A, and now it's back to M&A.

Also, he's waiting for more durability in the software AI story, which is slowly coming together. Wait and see, better ideas elsewhere right now.

It just reported a strong top and bottom line beat and raised their full-year forecast. They remain tops in enterprise software.

Is up 6,737% over 20 years. Has always been on the leading edge of business tech, currently their Agentics platform that uses AI. Their Agentforce program is underestimated for the growth it will bring CRM.