Salesforce: What 2024 Taught Us About Market Expectations

Summary:

• Salesforce’s share price reaction to the most recent earnings release might seem surprising, but there is a good reason why the stock skyrocketed.
• The company’s ability to grow organically would be in the spotlight in calendar 2025 as the end-goal remains high GAAP operating margins.
• I remain cautiously optimistic about the stock’s performance in 2025 as continued reliance on acquisitions deviates from the “Oracle Playbook” for profitable organic growth.

The sentiment around Salesforce’s (NYSE:CRM) stock always seems to be on the wrong side.

Back in late 2020, the stock was trading at unsustainably high levels, while at the same time high GAAP profitability was still a distant dream. All that has resulted

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