Should I Buy Salesforce (CRM)? Finance YouTuber Analysis

The YouTuber, analyzing Morningstar's buy recommendation, finds Salesforce attractive due to its strong free cash flow, which significantly exceeds net income, and a low price-to-free-cash-flow multiple (10x). He notes management's confidence, evidenced by substantial share buybacks. His valuation model, based on conservative assumptions, suggests a nearly 20% return, leading him to agree with a deeper dive into the stock.

“So, I don't necessarily disagree with Morning Star on taking a deeper dive into this one.”

The YouTuber identifies Salesforce as a market leader in customer relationship management software with sticky, reliable revenue due to the high cost of switching. Despite a significant stock price drop, the business remains highly profitable and growing, generating strong free cash flow. While it carries more debt and has lower returns on capital compared to Adobe, its essential role for businesses makes it a compelling value opportunity.

“Once a company builds its business around Salesforce, it is very hard and very expensive to switch away. That makes their revenue very sticky and reliable.”

The YouTuber is bullish on Salesforce, citing its strong earnings beat and management's aggressive share buyback program, which indicates their belief that the stock is undervalued. He highlights the company's leadership in CRM, improving profit margins, and robust free cash flow generation. His valuation model suggests a potential 16.5% annual return based on his assumptions.

“Buying back that much stock that fast tells you that management believes their own stock is cheap and may be rebounding soon. They're voting with billions of dollars.”

The YouTuber is interested in Salesforce, noting it has been 'beaten up' due to AI concerns, similar to other stocks Burry is targeting. His analysis, using conservative revenue growth and multiple assumptions, indicates a significant upside potential, with a calculated intrinsic value well above the current stock price.

“The stock's currently at 187. This is why I'm interested. I have that low price of 190, high price of 520, middle price of 320. I think there's a lot of interest there for that.”

The analyst recommends Salesforce due to its cheaper valuation compared to Oracle, trading at a forward P/E of 11.8, which is its lowest ever. He also favors its asset-light business model and believes AI agents will integrate with Salesforce's software rather than replace it, leading to a fair value of over $290 per share.

“If I had to pick one of them to buy today, I would pick Salesforce. I would pick Salesforce because of of cheaper valuation and the relatively asset light business model.”

The YouTuber sees Salesforce as a great long-term opportunity, despite short-term downward pressure, due to its entrenched position in many businesses. He believes that if management successfully integrates AI into its products, it could improve margins and profits, making it a strong investment.

“If you trust that management and your team and you believe that management team can deliver, then obviously you're looking at a great opportunity here.”

The YouTuber finds Salesforce interesting, believing that AI replacement fears are overblown and that its enterprise solutions are not easily replaced. He sees a potential massive opportunity if the company can successfully transition its business and if the valuation becomes cheap enough, making the risk-reward compelling for a closer look.

“It's definitely one to where if they can turn that corner and if we can get a cheap enough valuation, the riskreward becomes too great for me to at least not take a harder look at the stock.”

The YouTuber identifies Salesforce as a 'better and safer deal' among software stocks that have been hit by AI disruption fears. Trading at just 17 times earnings, its larger size provides the financial capacity to integrate AI rather than be negatively impacted by it, making it an attractive option for a near-term rebound.

“of these in this group, I think Salesforce ticker CRM is the better and the safer deal with shares trading for just 17 times earnings and the company's larger size really giving it some financial firepower to integrate AI rather than be killed by it.”

The YouTuber is holding Salesforce, noting its attractive valuation despite a downtrend and investor uncertainty regarding AI's impact on software sales. He suggests it could rebound on good news, but expresses long-term uncertainty about its ability to navigate the AI landscape.

“Now, on this one, I'm actually not quite sure about the long-term because I do think that AI eats into some of these software sales, but could be due for a rebound on any good news here.”

The YouTuber argues that Salesforce is a must-buy due to its attractive valuation at 15 times this year's earnings, despite a recent dip. He highlights its decades of dominance in the CRM market, its integration into thousands of corporate systems, and its strong push into AI with 'Agent Force', which has seen a 300% increase in usage. He projects a potential return to a 30x P/E ratio, implying a $400 share price.

“Salesforce ticker CRM are already up 12% from their February low as the market clues into this idea, but still down 25% for the year and at a very attractive valuation.”

The YouTuber recommends buying Salesforce, despite it being his 'least confident' pick, due to its recent 30% plunge making it 'too cheap to ignore.' He believes the sell-off, driven by AI fears, is overdone for the next couple of years, citing Salesforce's aggressive move into AI with its Agent Force platform and expected double-digit revenue and earnings growth.

“Shares plunged almost 30% in just the last few weeks after Anthropic released several AI models and renewing fear that AI is going to put software companies like Salesforce out of business.”

The YouTuber is buying Salesforce shares, believing that fears of AI eating into enterprise software demand are overblown. Instead, they argue that software companies could see stronger growth by integrating AI agents into their business models, and the recent tech selloff presents a buying opportunity.

“Adjusting stock valuations for revenue growth. I'm buying shares of Salesforce and Snowflake, ticker SN, on this theme.”

The analyst recommends buying Salesforce due to its current deep discount valuation compared to its growth, especially when adjusted for sales and earnings growth. Despite concerns about AI impacting enterprise software, Salesforce is developing its own AI agents and has strong profitability, making it a better value than competitors like Snowflake when growth is factored in.

“I would probably go with some shares of ser of Salesforce, ticker CRM, and Snowflake, ticker C, SN right here, be able to play off of this uh this recent discount.”

The YouTuber is buying Salesforce, viewing it as an 'undiscovered opportunity' despite a 20% year-to-date decline driven by AI fears. He argues that AI will eventually help Salesforce through its Agent Force platform and subscription revenues will provide stability. He points to strong fundamentals, including a doubling of operating cash flow over three years and a significant increase in gross margin from 73% to 77%, and a 10x improvement in operating profit from 2% to 22%.

“Here in shares of Salesforce, ticker CRM, one of the few stocks I'm looking at down this year, down 20% so far this year to date. And it's really in a scare in software driven by AI.”

The YouTuber identifies Salesforce as his top pick, noting that its Agentforce segment demonstrates that AI drives rather than destroys its business, with significant recurring subscription revenue. Despite slower revenue growth, it's off a larger scale, and Salesforce is considered the best value in the group, trading at a 36% discount to its January valuation.

“Salesforce is by far the best value here, trading at just 5.7 tons on a price to sales basis. A 36% discount to where the stock was trading at just in January.”

The YouTuber sees Salesforce as a value play, currently down 25%, arguing that fears of AI agents killing software companies are overblown in the short to medium term. Salesforce, with its Einstein project, is well-positioned to help companies implement AI into customer relationships and workflow automation, and its CEO has a history of underpromising and over-delivering on sales growth.

“Salesforce is very well positioned there. Okay, it's the CRM platform and it's its natural place for embedding those AI agents, the workflow automization, the the personalization.”

The YouTuber sees Salesforce as an opportunity, noting its shares are down 23% this year due to fears that AI tools might replace large software providers. However, recent strong earnings from other software companies suggest these fears might be overblown, and a study indicates companies still need large providers for AI transition. Good results from Salesforce could lead to a stock bounce.

“And all this means there is a great chance we see some good results from Salesforce that back up this idea. And a sigh of relief is going to mean that stock could bounce.”

Salesforce is presented as a strong pick, especially in the context of 'Aentic AI'. It successfully passed the 'Rule of 40' test, indicating robust financial health and growth prospects.

“And in that next wave of Aentic AI, it's tough beating Service Now and Salesforce. Both strong picks as well.”

The YouTuber strongly recommends Salesforce as a hedge against AI job destruction, focusing on its leadership in 'Agentic AI' for business use. He highlights Salesforce's extensive execution of predictions on its Einstein platform and the widespread use of its Agent Force agents across various industries. He believes that while current growth forecasts are modest, the eventual impact of Agentic AI will surprise the market, leading to significant upside.

“No company is as close to making Agentic AI a reality as Salesforce. already executing trillions of predictions on its Einstein platform every week and more than 8,000 companies using its agent force agents.”

The YouTuber likes CRM for its potential in generative AI but finds it currently expensive at seven times price-to-sales for only 7% sales growth. He would wait for dips to accumulate shares, suggesting a buy on weakness.

“So I would be waiting for dips to load up on this one.”

The YouTuber sees Salesforce as a strong buy due to its lead in agentic AI, which is a significant use case for artificial intelligence. He believes current growth forecasts are underestimated given Salesforce's advantage in this rapidly expanding market. The company is already leveraging AI agents to improve customer engagement, as demonstrated by a successful case study with General Mills.

“My target for $412 is based on 2026 sales of $45 billion and 9x price to sales multiple 33% return but should go even higher as that growth in agentic AI builds.”

The analyst views Salesforce as a long-term holding, noting its development of AI agents positions it well for future growth, as demonstrated by General Mills tripling customer engagement. Despite slower sales growth, the shares are trading at a relatively cheap 7.5 times this year's revenue, with potential for acceleration as AI agents are deployed.

“the shares are trading at just 7 and a half times this year's Revenue so fairly cheap by comparison and that growth could accelerate as these AI agents get deployed”

The YouTuber is watching Salesforce and would buy on any further dips after its upcoming earnings report. He believes the stock leads in AI assistants but acknowledges the weak period warned about by the CEO, which could lead to another post-earnings disappointment.

“While I think the stock leads in the kind of AI assistant that are getting a lot of attention right now we're not out of the weak period that CEO bof warned us about in last quarter That Could set the stock up for another disappointment on its earnings but I'd be buying on any further dips here.”

The YouTuber suggests buying Salesforce due to its potential to benefit from the next wave of AI-driven productivity, particularly with its new AI-powered digital agents. Despite a recent stock dip and downbeat forecast, its current price-to-sales valuation of 6.6x is considered low compared to its historical 8x, making it an attractive investment given its strong growth prospects in AI.

“Shares of CRM are trading for just 6.6 times on a price to sales basis after that weakness this year that's against a valuation as high as eight times just at the beginning of the year strong growth on its developing AI products and low valuation make this one one to watch in the theme”

The YouTuber is currently holding shares of Salesforce (CRM) as part of his long-term portfolio but is not adding more at this time. He is waiting for management's report on Wednesday or for one more quarter to pass before considering accumulating more shares, following a disappointing outlook last quarter due to customer spending exhaustion.

“now I am holding shares of sales Force as part of my forever stock portfolio but I'm not adding more just yet I'll be waiting to hear what management says in its Wednesday report or just for one more quarter before again accumulating the shares”

The YouTuber is using the recent 21% sell-off in Salesforce shares to add to their position, viewing the valuation as attractive at six times revenue. Despite a warning about slower growth due to AI spending and enterprise caution, Salesforce remains an industry leader with a proven CEO capable of maintaining its competitive advantage.

“last week's selloff has made the valuation attractive again at just six times revenue and the company remains a standout leader in its industry CEO benof has continuously proven his ability to grow the company and maintain its competitive advantage over PE and I'm using the sell-off to pick up more shares”

The YouTuber recommends Salesforce, highlighting its integration of conversational AI through its Einstein platform to create customizable and predictive customer experiences. The platform has been used to significantly improve customer engagement for clients, and earnings are expected to grow substantially.

“Salesforce ticker CRM holding the shares since 2017 now CRM integrates conversational AI in all its app through its Einstein platform using customer data to create that customizable and predictive experiences within the platform.”

The YouTuber recommends Salesforce due to its deep involvement in AI for business operations, significant free cash flow, and investment capital. He believes its Einstein GPT platform can be expanded to automate tasks in administration, legal, and consulting, benefiting from AI adoption.

“no company is as deep into AI for business operational needs as Salesforce Inc ticker CRM”

The YouTuber considers Salesforce one of his 'five forever stocks' and is holding it despite a recent 11% pullback. He believes it will benefit from its leadership in HR, customer management, AI, and cloud services, with revenue still expected to grow 10% this year.

“CRM is one of my five forever stocks that I'm buying uh really the stocks over the next 30 years I think would leave it's a leader in the HR and customer management artificial intelligence space and I think really going to benefit from that as well as the cloud services area.”

The YouTuber, a long-term holder of Salesforce, sees a strong future for the company, especially in AI and enterprise services. Despite a recent sell-off, he notes analysts expect 31% sales growth, bringing its high P/E ratio to a more reasonable 1.3x PEG ratio.

“I think this has a great future sold off on its earnings report last week but the software companies still stands to benefit big from that Ai and especially Ai and Enterprise services.”

The YouTuber believes Salesforce could have good long-term value, trading at just six times expected 2023 revenue, which is considerably lower than other AI-related stocks. He anticipates the company will focus on AI products and increase its full-year sales outlook, supporting its growth.

“but this could still have some good long-term value with the shares trading just six times expected 2023 Revenue so price to sales just six times here quite a bit lower than some of these other AI stocks we're seeing.”

Salesforce is a long-term favorite, leading in CRM software and benefiting from themes like AI and remote work. It controls nearly 20% of the global CRM market, translating its size into a competitive advantage and driving strong sales growth well above the industry average. Analysts project significant upside despite its large size.

“Analysts have a 216 dollar price Target on the shares 53 percent higher from here.”

The analyst recommends Salesforce as a long-term blue-chip buy due to its leadership in key tech themes like AI and cloud, consistent revenue growth of 26% since 2014, and strong market share in CRM software. Despite a recent 45% drop from its peak, analysts have a target of $240, suggesting significant upside.

“this is one of my favorite Buy and Hold Blue Chips”

The YouTuber considers Salesforce a long-term 'forever stock' despite a significant slowdown in sales growth and a 47% drop in share price over the last year. He highlights its strong position in building a software empire across cloud, marketing, HR, and AI, and notes its current low price-to-sales ratio of 6.1x as an attractive valuation.

“Shares are down 47 last year over the last year and are trading at just 6.1 times on that price to sales basis really the lowest I've ever seen them.”

The analyst is buying Salesforce, highlighting its leadership in CRM and expansion into cloud-based solutions, marketing, and data analytics. He expects continued double-digit sales growth driven by trends in AI, remote work, blockchain, and cloud services, supported by strategic acquisitions like Slack and Tableau.

“this is another one that I'm buying in February for our bowtie portfolio”

The YouTuber identifies Salesforce as a top holding due to its leadership in AI, cloud, and data, which are themes driving robotic automation. He notes its consistent long-term revenue growth, despite being a mature company, and its relatively cheap valuation on a price-to-sales basis compared to other growth stocks. He emphasizes its potential for continued growth beyond the analyst target.

“Salesforce.com ticker CRM just because it leads in so many of those big picture themes that are gonna change our world over the next decade including AI remote work cloud and data”

The YouTuber suggests avoiding Salesforce, categorizing it as 'dead money risk' due to slowing growth and AI disruption, despite it being a profitable business. He notes that the stock has underperformed over the past five years, indicating opportunity cost.

“It's very easy to talk about this because the whole SAS apocalypse is based on this bucket, right? It's based on companies like a Salesforce, like an Adobe.”

The YouTuber believes Salesforce is a long-term buy with great opportunities, but expects it to gain significant momentum later, likely in 2027 or 2028. He anticipates a rotation of money into such stocks when the current chip cycle's momentum fades, as they are beneficiaries of the broader AI revolution.

“As far as stocks like Service Now and CRM, those stocks are buys and they've got great long-term opportunities, but those ones might make more of a move in like 27 or 28.”

The YouTuber recommends buying Salesforce, stating it's priced too cheaply for its expected 10% to low-teens revenue growth per year, especially considering its AI agent business potential. He points to its strong revenue growth and consistent high margins, and its stake in Anthropic as a potential future value driver. He views it as a safer risk-reward profile compared to Service Now.

“The beautiful thing about Service Now and Salesforce stock is they trade way too cheap given their growth rates.”

The YouTuber suggests Salesforce will be 'loved' by Wall Street in one to two years, as they will eventually understand how much the company will benefit from the AI wave. He implies that current market sentiment undervalues its AI potential.

“SoFi, oh my gosh, Salesforce, one to two years, they're going to love this one. And when I say they, I'm talking Wall Street again, right?”

The YouTuber recommends Salesforce (CRM) for its potential to make a parabolic move, similar to CrowdStrike or Meta in 2022. He aims to position viewers early for significant long-term gains.

“I want this on your radar because guys, you remember Crowd Strike, you remember United Health, you remember Meta back in 2022? This will be one of the plays that make one of those parabolic type of moves when it's time.”

The analyst suggests avoiding Salesforce despite its attractive valuation due to uncertainty surrounding its ability to transition from a seat-based to a usage-based model. While its Agent Force product is growing, it's not enough to offset the drag from legacy seat-based revenue. The company also took on significant debt for share buybacks, which could be a drag if revenue re-acceleration doesn't materialize quickly. A reverse DCF analysis implies very low future growth expectations are priced in.

“But you better believe that the company can execute and grow Agent Force faster than it loses revenue on its traditional seatbased platform for it to be worth it.”

The YouTuber completely sold out of Salesforce in mid-February, citing the long-term challenge to its thesis posed by the rapid advancements and proliferation of agentic AI tools.

“So I completely sold out of Salesforce and Adobe because of this while adding to Crowd Strike and Viva. So Salesforce I sold out of in midFebruary for about a 27% loss.”

The YouTuber sold Salesforce due to the emergence of Claude Co-work, a low-cost AI alternative that can perform many of Salesforce's functions, potentially eroding its moat and pricing power. He believes this new technology will collapse the terminal value of Salesforce, despite its existing high switching costs.

“For Salesforce, Co-work can pull data, create drafts, and log activities for you. It can also uh and when it can do those things, then sales teams need to think about justifying $175 per seat per month with Salesforce when they could use say a $200 per month subscription to Co-work to cover many different needs.”

The YouTuber argues that legacy SaaS companies like Salesforce face a 'silent growth problem' due to AI agents. While existing customers may remain, new businesses will likely choose AI-native alternatives, leading to a long-term decline in growth rates that current metrics don't yet reflect. This re-rating could significantly devalue the stock.

“Salesforce probably isn't going to lose a ton of their existing customers, especially the big ones. But if a Salesforce competitor comes along that offers the same functionality as Salesforce, and I'm not talking about an in-house vibe coding challenge here. I'm talking about someone that has much lower overhead and much lower costs and just a a different business model. Well, then a new business that comes along that's being started today that focuses on something else entirely. Well, they're going to want to go not with that legacy provider, but with the newer provider.”

The YouTuber categorizes Salesforce as a 'wild card' due to the dual impact of AI. While its existing data creates switching costs, new companies might opt for AI-native providers. He owns the stock but is reconsidering, noting that an attractive valuation is conditional on Salesforce successfully navigating this transition.

“That being said, I do think that the valuation is attractive if Salesforce can navigate this. Uh that is also a stock that I own, although I am thinking twice about that.”

Ray Dalio has invested $511 million in Salesforce, seeing its recent price drop as an opportunity. He believes fears of AI disrupting its customer relationship management software are overblown, citing the high switching costs for large enterprises and Salesforce's integrated ecosystem. The company continues to show strong growth (9-12% revenue, 14% profit) and is trading at a historically low valuation of 14x earnings.

“La tercera compañía en la que se ha enfocado Raidalio es en Sales Force, una compañía que curiosamente ha bajado recientemente por el miedo a que la IA pueda hacer desaparecer este negocio de software.”

The YouTuber suggests that the recent sell-off in software stocks like Sales Force is an overreaction driven by sentiment rather than fundamentals. They argue that companies are deeply integrated into platforms like Sales Force, making short-term replacement difficult due to high switching costs and long-term contracts. The underlying fundamentals, such as revenues, cash flow, and margins, remain stable, presenting a unique buying opportunity at historically favorable valuations.

“Denes, einer der einflussreichsten Technologieanalysten in der Wall Street, bezeichnet den aktuellen Ausverkauf der Software Werte als einzigartige Chance. Er betont, dass Unternehmenskunden viel zu tief in Plattform wie Sales Force oder Service integriert sind, als dass sie diese kurzfristig ersetzen könnten.”

The YouTuber increased their position in Salesforce, a leader in CRM, citing its AI-powered customer service tool, Agent Force, as a key growth driver. Despite recent slow revenue growth, analysts expect stable profit growth, and the YouTuber believes Salesforce could exceed expectations.

“Dennoch denke ich, dass Salesforce diese Erwartung übertreffen könnte und daher habe ich meine Position hier weiter ausgebaut.”

The YouTuber holds Salesforce, identifying it as a market leader in CRM tools. He mentions a 48% unrealized gain on his position.

“gefolgt von Salesforce ein Marktführer für C Tools ist 48% plus.”

The YouTuber sees a buying opportunity in Salesforce after a 20% post-earnings drop, despite concerns about slowing revenue growth (8-9% projected for 2024). They believe the company will now focus on profitability and that AI integration will drive future growth, leading to an expected 16% annual earnings growth. The stock is considered fairly valued with a free cash flow ratio of 20 and a forward P/E of 20.

“Ich habe meine Anteile an Salesforce nach dem Kurseinbruch bereits aufgestockt”

The speaker believes Salesforce will remain relevant, arguing that businesses will still need CRMs and Salesforce will likely have more customers in five years. However, they question its ability to capture the multi-trillion dollar AI TAM compared to new AI-native companies, citing a 15-year payback period based on its growth rate and free cash flow margin.

“I think I think it's not going to make sense for a business to build their own CRM. Like that's kind of obvious. So Salesforce is still going to be around. I would bet that in five years they have more customers than they have today. But if I had to bet on who's going to capture more of a multi-trillion dollar AI TAM, I'm going to bet on these new AI native companies over most or all of the traditional SAS companies.”

The YouTuber notes Salesforce's significant deceleration in revenue growth (down to 8% annually) and its horizontal software nature, which makes it vulnerable to AI disruption. While trading at a fair 16.6x free cash flow, he finds it unexciting and suggests its struggles in the AI world make it a less compelling investment.

“It is currently trading for a price to free cash flow of roughly 16.6, which is a free cash flow yield of roughly 6%. And personally, I do think that this is a pretty fair price to pay for Salesforce business if it can continue to grow its revenues by 9% annually over the long term. But this one is not a very exciting company.”

The YouTuber finds Salesforce unattractive due to its valuation of 28 times free cash flow (after accounting for stock-based compensation) for a company with decelerating revenue growth of 8-9% annually. He argues that this valuation is expensive compared to other high-quality businesses he's finding, particularly in international markets, and would only be interested if the stock declined significantly.

“So for me, when I'm taking a look at the world of investments, I don't think that Salesforce is very attractive and therefore I'm buying other stocks and I would want Salesforce to decline quite a bit before I would become interested in it.”

The YouTuber highlights Salesforce's cost discipline, AI monetization without customer acquisition costs, and strong free cash flow of $12.9 billion. It trades at a 5.5x forward sales multiple and is down 29% in the last year, making it a good deal. The company also benefits from a massive moat due to the difficulty of switching CRM systems.

“Salesforce trades at 2020 levels and has a massive moat because switching CRM it's a pain in the ass no company wants.”

The YouTuber is interested in buying Salesforce if its stock price continues to fall. He views it as currently trading at 'very interesting prices' and wants to have cash available to capitalize on a potential further correction.

“Companies like Meta Amazon Salesforce, Adobe are already trading at very interesting prices. If they keep crashing, I want to have the cash ready to buy.”

The YouTuber views Sales Force as a fundamentally sound quality stock, despite its recent underperformance and perception as a potential AI loser. He believes it is more promising than PayPal, noting its market leadership in CRM and its recent initiation of dividend payments.

“Ich persönlich halte Sales Force für aussichtsreiche als PayPal. Im Prinzip sind es beides fundamental betrachtete Qualitätsaktien.”

The YouTuber suggests Salesforce is a buy due to its current undervaluation, trading at a significantly lower P/E ratio compared to its historical average and even consumer staples like Coca-Cola. Despite slowing growth and competition from Microsoft, its strong market position in CRM, solid balance sheet, and free cash flow generation make it attractive. The market's concerns about growth and goodwill are noted, but the current valuation offers a compelling entry point for long-term investors.

“Sales Force ist um 54% billiger und Sales Force ist mittlerweile so billig, sage ich mal in Anführungszeichen, da steht immer keine Kaufempfehlung. Ja, da sehen wir uns mal Vergleich mit Coca-Cola oder noch mit McDonald's, dass ihr dann hier auch seht und jetzt suchen wir mal rein, dass hier Sales Force billiger ist als auch beispielsweise diese gutlaufenden Konsumgüterhersteller bzw. Restaurantbetreiber.”

The YouTuber already owns Salesforce and sees it as a quality stock with a strong CRM platform. Despite recent stock price drops due to AI integration concerns and acquisition plans, the company's financials are solid, and management has raised forecasts. He would add to his position if the stock falls to $230, as he believes it is currently fairly valued with a projected 13% annual return.

“Ich würde aber nachkaufen, falls der Aktienkurs noch mal richtig zurückgebe. Ich habe hier ein Kauflimit mal drin, wenn ich mich rich erinnere. Genau hier bei 230 USDL.”

The YouTuber bought Salesforce, a successful CRM software company benefiting from AI. He highlights its strong growth in adjusted earnings and cash flows, noting that while it previously experienced strong overvaluation, its current P/E of 26 makes it more attractive.

“Momentan KGV von 26 wo bin ich dann hier eingestiegen to date zwei Käufe sogar gemacht den ersten am 3.4. Also hier habe ich zum ersten Mal gekauft die Aktie und zwar 50 Stück oder noch mal nachgekauft hier am 21.4.”

The analyst bought Salesforce, referencing a previous analysis where it was identified as a growth stock on sale. The decision to buy is based on the prior analysis, which is linked in the video, implying it's considered undervalued.

“warum ich die Aktie gekauft habe hier könnt ihr es erfahren das war also die drei Wachstumsaktien in die ich jetzt investiert habe mit dem firmend Depot”

The analyst recommends buying Salesforce due to its market-leading position in CRM, recent efficiency improvements leading to exploding margins, and a current valuation that appears significantly undervalued based on its operating cash flow. Despite a recent stock drop due to slightly lower-than-expected revenue growth, the company is financially sound with no significant debt and a new dividend payout.

“Die Aktie hat sich jetzt auch wieder ein bisschen erholt ist aber wie ich finde immer noch relativ günstig bewertet.”

The analyst is skeptical about Salesforce's position in AI, noting that its growth rate has slowed to single digits despite being a premium-valued company. The efficiency promises of AI are not evident in its numbers, and the analyst believes that AI tools could disrupt Salesforce's business model, especially for smaller, more nimble companies.

“I don't think the efficiency promises that we've seen from a lot of these artificial intelligence companies including Salesforce itself is actually showing in the numbers.”

The analyst believes Salesforce is undervalued, with a fair value of $327 per share compared to its current trading price of $260. This is based on strong free cash flow estimates, improved operating margins due to a shift from growth to profitability, and a growing backlog (RPO). The company has also become more investor-friendly by initiating a dividend and buying back shares.

“Using those free cash flow estimates, we end up with a fair value of about 327 per share. Considering the stock's trading at about 260 per share, the stock looks reasonably undervalued.”

The YouTuber believes Salesforce is a high-quality, undervalued company despite its recent acquisition of Informatica. He argues that this acquisition is strategic, well-priced, and addresses a weak point in Salesforce's offerings, indicating a more disciplined approach to M&A.

“Salesforce is a very volatile company. It trades up and down after earnings in many cases. Right now, Salesforce still trades at a cheap price, and I expect this company to work its way back to 330.”

The analyst is bullish on Salesforce, citing consistent revenue growth, expanding margins indicating a wide moat, and strong operating and free cash flow growth. Despite low investor expectations, the company shows organic growth across all segments, increasing total performance obligations, and a decreasing stock-based compensation trend, all while maintaining a relatively low valuation.

“I look at Salesforce and I see everything going well with this company I see organic Revenue growth I see share BuyBacks I see free cash flow growth substantial free cash flow per share growth”

The YouTuber states that Salesforce's current valuation is fair, having been somewhat overvalued six months prior. While the stock has fallen significantly, the expected annual return of 6.3% is slightly below the market average. He will hold his existing shares but not buy more, awaiting clearer signs of improved profitability and sustained growth, especially as the company is now pressured to prove its profitability.

“Ich werde meine sales Aktien trotzdem halten werde aber auch nicht nachkaufen obwohl der Kurs ebenso gefallen ist”

The analyst plans to hold Salesforce shares due to strong conviction in its business model, which features recurring revenues, high customer lock-in, and diversified segments. However, current profitability is low and shareholder dilution from stock-based compensation and acquisitions is a concern. The analyst expects a 6% annual return based on a 20% short-term growth rate, 15% net margin, and a P/E of 20.

“ich werde meine salesforce aktien halten ich kaufe aktuell salesforce nicht nach die salesforce aktie hat auch im letzten marc pesch aktuell etwa 35 prozent verloren andere tech aktien haben noch deutlich mehr verloren wenn die salesforce aktie weiter runter gehen sollte wäre es für mich definitiv ein interessanter kaufe ich bin sehr überzeugt von dem geschäftsmodell ich finde da macht sehr vieles sehr viel sinn aus aktionärssicht ist es eben schade dass die profitabilität noch nicht da ist oder schwer abzuschätzen ist gleichzeitig eine verbesserung stattfindet auch wenn ich vom geschäftsmodell unter strategie grundlegend überzeugt bin und deshalb auch meine aktien erstmal halten würde”

The analyst would consider buying Salesforce if its stock price drops further, as they are highly convinced by the underlying business model, its strong competitive advantages, and diversified revenue streams. The current lack of clear profitability and ongoing share dilution are noted as risks, but a significant price drop would make it an attractive entry point.

“wenn die salesforce aktie weiter runter gehen sollte wäre es für mich definitiv ein interessanter kaufe ich bin sehr überzeugt von dem geschäftsmodell ich finde da macht sehr vieles sehr viel sinn aus aktionärssicht ist es eben schade dass die profitabilität noch nicht da ist oder schwer abzuschätzen ist gleichzeitig eine verbesserung stattfindet auch wenn ich vom geschäftsmodell unter strategie grundlegend überzeugt bin und deshalb auch meine aktien erstmal halten würde”

The analyst believes Salesforce is still overvalued at its current price of $169 per share, despite a 50% drop from its peak. While the business model is strong with consistent revenue and EBITDA growth, the current market multiple of 50x forward EBITDA is too high. He would consider buying if the stock price falls below $100, as this would offer a more attractive return given the adjusted cash flow per share after accounting for stock-based compensation.

“if the price falls back closer to 100 bucks I think it's starting to get a really really attractive company but I would wait for it”

The analyst believes Salesforce is currently overvalued, offering only a 10% internal rate of return (IRR) at its current price of $266, which is merely a market return. He prefers to wait for the stock price to drop closer to $200 per share to achieve a more attractive 15% IRR, providing a better margin of safety and outperforming the market.

“for me on this stock as much i really really do like the stock... it's a pass but i do appreciate that it is continuing to grow... I would like to see the price come down a little bit... I'd love to stock closer to 200 a share.”