
NYSE:CRM
This summary was created by AI, based on 31 opinions in the last 12 months.
SalesForce.com Inc. (CRM) is currently experiencing significant scrutiny amid concerns about the impact of AI on its business model and the broader software-as-a-service (SaaS) sector. Experts note that while CRM has reported earnings growth and maintains a low price-to-earnings (P/E) ratio, the stock has seen considerable volatility and a downturn from previous highs. The transition to AI and the potential need for changes in revenue models from traditional 'seats' to more outcomes-driven approaches have caused some analysts to recommend caution. Despite these concerns, many consider CRM's entrenched position within the market and the potential for future growth driven by AI integration as positive indicators. Overall, sentiment appears mixed, with some viewing significant upside potential while others remain skeptical about the company's ability to adapt in this rapidly changing landscape.
We like CRM a lot, for growth (high), valuation (OK, for a tech) and management. Momentum is excellent and the stock hit a new high today ahead of earnings next week. It generates good free cash flow and has good potential in a rate pivot. It should grow at 10% this year and accelerate higher into 2024/25. We would be fine buying.
Unlock Premium - Try 5i Free