Salesforce: Growth Investors Are Ignoring The Profit Story (Rating Upgrade)


  • Wall Street is concerned that Salesforce may face headwinds in growth due to generative AI, but may be ignoring the company’s growing cash flow.
  • Salesforce has balanced above-market top-line growth with expanding profit margins.
  • I see at least 20% upside potential from multiple expansions alone.
  • I see a clear path to market-beating returns given the net cash balance sheet and solid top-line growth.

TIME Women Of The Year

Matt Winkelmeyer

Salesforce (NYSE:CRM) has long been able to adapt to the prevailing narratives in the market. The company was a pioneer of the software as a service model (‘SAAS’), and heading into this year appeared to be a beneficiary of artificial

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

I am long all positions in the Best of Breed Growth Stocks Portfolio.

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