Latest news with #SalesCloud
Yahoo
03-07-2025
- Business
- Yahoo
Morgan Stanley sees 'a compelling catalyst' for Salesforce stock rally
-- Morgan Stanley analysts say Salesforce's recent pricing and packaging changes could serve as a key driver for growth acceleration, providing 'a compelling catalyst' to re-rate the stock. The firm reiterated its Overweight rating on Salesforce (NYSE:CRM) in a note Thursday, citing untapped upside potential in the company's subscription revenue trajectory through fiscal 2028. 'Pricing & Packaging (NYSE:PKG) remains a compelling catalyst for growth acceleration to re-rate shares,' Morgan Stanley wrote in a note, following meetings with Salesforce management. The firm said it walked away with 'a clearer view of the prospect for topline re-acceleration,' driven in large part by strategic price increases and bundled offerings. While list price increases on the Enterprise and Unlimited tiers of Sales and Service Cloud are expected to contribute 'modest tailwinds' of 60 basis points and 50 basis points to fiscal 2027 and 2028 subscription revenue growth, Morgan Stanley sees a bigger opportunity in customer upgrades. 'The increased list prices going into effect in August 2025 represent a strategic effort, meant to push adoption of Premium tiers given incremental bundled value,' the analysts noted. Using Sales Cloud as a benchmark, the bank estimates that customers can achieve ~70% cost savings when adopting Unlimited Edition bundles versus standalone features, and over 100% cost savings with the Agentforce 1 tier versus Unlimited on a like-for-like basis. Morgan Stanley believes these price moves will incentivize large customers to migrate to higher-tier plans, particularly as those bundles include high-value tools like Data Cloud and Agentforce. 'Valuation remains undemanding,' the analysts added, with Salesforce trading at ~17x EV/2026 FCF versus a ~33x average for large-cap peers. They concluded: 'Innovative Pricing/Packaging strategies driving upgrade activity should prove a compelling catalyst for inflecting growth higher.' Related articles Morgan Stanley sees 'a compelling catalyst' for Salesforce stock rally Growth funds favor Makemytrip and SK Hynix: BofA BofA sees improving ad market boosting Roku's outlook as it lifts target
Yahoo
18-06-2025
- Business
- Yahoo
Salesforce announces 6% price increase for enterprise, cloud products
Salesforce (CRM) says it is updating pricing for Enterprise Editions and Unlimited Editions for Sales Cloud, Service Cloud, Field Service, and select Industries Clouds. On August 1, list prices will increase by an average of 6%. 'These increases reflect the significant ongoing innovation and customer value delivered through our products. There are no planned changes to pricing for Salesforce Foundations, Starter, or Pro Editions,' the company said in a statement. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on CRM: Disclaimer & DisclosureReport an Issue Option traders moderately bearish in Salesforce with shares down 3.23% JPMorgan Says the S&P 500 Has Limited Upside – but These 2 Stocks Stand Out Salesforce blocking AI rivals from using Slack data, The Information reports Salesforce Tightens Grip on Slack Data to Block AI Rivals Salesforce (CRM) Faces Neutral Outlook as Valuation Struggle Sours Investor Sentiment Sign in to access your portfolio
Yahoo
06-06-2025
- Business
- Yahoo
Salesforce, Inc. (CRM): A Bull Case Theory
We came across a bullish thesis on Salesforce, Inc. (CRM) on Compounding Your Wealth's Substack. In this article, we will summarize the bulls' thesis on CRM. Salesforce, Inc. (CRM)'s share was trading at $265.37 as of 30th May. CRM's trailing and forward P/E were 41.53 and 23.47 respectively according to Yahoo Finance. Pixabay/Public Domain Salesforce delivered solid Q1 FY2026 results, posting $9.83 billion in revenue, up 11% year-over-year, with subscription and support revenue growing 12% in constant currency. Remaining performance obligations (RPO) reached $60.9 billion, up 13%, reflecting strong demand visibility. Operating cash flow rose 4% to $6.5 billion. Salesforce reaffirmed its full-year guidance, including a 34% non-GAAP operating margin and 9–10% free cash flow growth. Sales Cloud drove 80% of large enterprise deals, with strength in verticals like financial services, healthcare, and retail. Account executive headcount is set to expand by 22% this year. Internationally, growth was robust in Canada, the UK, France, and South Asia, while Japan showed signs of acceleration. The company's AI initiatives are scaling rapidly—AgentForce, a generative AI product, now has over 4,000 paying customers and was featured in 800+ customer deployments, with potential to reach $1 billion in annualized revenue. Data Cloud surpassed $1 billion in ARR and is processing 22 trillion records, up 175% year-over-year. Tableau, MuleSoft, and Slack were also prominent in major deals, as customers increasingly adopt cross-cloud solutions. Salesforce highlighted Slack's evolution into an enterprise AI interface, improving lead routing times dramatically from 20 minutes to 19 seconds. The recent Informatica acquisition aims to enhance data harmonization and accelerate AI capabilities. Salesforce introduced Flex Credits, a usage-based pricing model reflecting early-stage but growing AI consumption. Notable customer wins included PepsiCo, OpenTable, and Takeda. The company raised its FY26 revenue outlook to $41.3 billion, underscoring its transformation toward data, AI, and unified platform-driven growth. Previously, we have covered Salesforce, Inc. (CRM) in April 2025 wherein we summarized a by Quality Equities on Substack. In the article, Salesforce (CRM) was highlighted as a structurally resilient, high-margin software business undervalued due to macroeconomic fears. The article argued that the market was underestimating Salesforce's long-term free cash flow growth, despite strong fundamentals, improving margins, and rising AI-driven innovation. Since our last coverage, the stock is up 13% as of 30th May. Salesforce, Inc. (CRM) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 140 hedge fund portfolios held CRM at the end of the first quarter which was 162 in the previous quarter. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Salesforce, Inc. (CRM) – Agentforce and Sales Cloud to Drive CRM Growth Beyond 12%, Says BofA
We recently published a list of . In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks surging on news and ratings. According to Daniel Ives, global head of technology research at Wedbush Securities, the US- China agreement is once again creating a bull market environment for tech. 'If you are a tech investor, this is a dream scenario,' Ives noted on CNBC's 'Worldwide Exchange.' On Monday, the U.S. and China announced that they would temporarily reduce tariffs on each other for 90 days. Following the news, Wall Street's three major indexes surged sharply on the same day, with the S&P 500 marking its highest level since early March. READ ALSO: and The U.S. said it will cut tariffs imposed on Chinese imports to 30% from 145% while China said it would cut duties on U.S. imports to 10% from 125%. Investors saw this as a big positive surprise. 'It's a relief rally because there was a lot of anxiety and angst about tariffs between the U.S. and China. They are going to scale it down to much more reasonable levels so the fall-out from tariffs will probably be more manageable and limited.' Unfortunately, the rally in US stock futures paused as investors focused on a key inflation report and lingering economic concerns. 'The challenges are not over. The de-escalation was a lot stronger than even the best hopes, but you have to remember that the US economy still faces average of effective tariffs of more than 13%.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A customer service team in an office setting using the company's Customer 360 platform to communicate with Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. On May 12, Bradley Sills from Bank of America Securities maintained a 'Buy' rating on the stock with a price target of $350.00. Sills' buy rating stems from the company's steady growth in its Sales Cloud business. He noted how Sales Cloud is an important component of Salesforce's growth strategy, and that factors such as increased adoption of its AI-powered platform Agentforce and upselling opportunities with Revenue Cloud and Industry Cloud could boost growth from a steady 9-10% to a sustainable 12%. Being the core of Salesforce's CRM platform, Sales Cloud has the potential to lead the market. The company is also likely to experience significant industry growth on the back of its integrated platform, business intelligence capabilities, and AI innovations. Overall, CRM ranks 5th on our list of AI stocks surging on news and ratings. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Salesforce, Inc. (CRM) – Agentforce and Sales Cloud to Drive CRM Growth Beyond 12%, Says BofA
We recently published a list of . In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks surging on news and ratings. According to Daniel Ives, global head of technology research at Wedbush Securities, the US- China agreement is once again creating a bull market environment for tech. 'If you are a tech investor, this is a dream scenario,' Ives noted on CNBC's 'Worldwide Exchange.' On Monday, the U.S. and China announced that they would temporarily reduce tariffs on each other for 90 days. Following the news, Wall Street's three major indexes surged sharply on the same day, with the S&P 500 marking its highest level since early March. READ ALSO: and The U.S. said it will cut tariffs imposed on Chinese imports to 30% from 145% while China said it would cut duties on U.S. imports to 10% from 125%. Investors saw this as a big positive surprise. 'It's a relief rally because there was a lot of anxiety and angst about tariffs between the U.S. and China. They are going to scale it down to much more reasonable levels so the fall-out from tariffs will probably be more manageable and limited.' Unfortunately, the rally in US stock futures paused as investors focused on a key inflation report and lingering economic concerns. 'The challenges are not over. The de-escalation was a lot stronger than even the best hopes, but you have to remember that the US economy still faces average of effective tariffs of more than 13%.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A customer service team in an office setting using the company's Customer 360 platform to communicate with Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. On May 12, Bradley Sills from Bank of America Securities maintained a 'Buy' rating on the stock with a price target of $350.00. Sills' buy rating stems from the company's steady growth in its Sales Cloud business. He noted how Sales Cloud is an important component of Salesforce's growth strategy, and that factors such as increased adoption of its AI-powered platform Agentforce and upselling opportunities with Revenue Cloud and Industry Cloud could boost growth from a steady 9-10% to a sustainable 12%. Being the core of Salesforce's CRM platform, Sales Cloud has the potential to lead the market. The company is also likely to experience significant industry growth on the back of its integrated platform, business intelligence capabilities, and AI innovations. Overall, CRM ranks 5th on our list of AI stocks surging on news and ratings. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
