Core Viewpoint - Salesforce, Inc. is expected to report strong fourth-quarter fiscal 2025 earnings driven by digital transformation, cloud adoption, and AI integration despite some macroeconomic challenges [1][2]. Group 1: Revenue Drivers - The ongoing digital transformation and the rise of AI-powered automation are significantly boosting demand for Salesforce's products, particularly its AI-driven solutions like Einstein Analytics [3][5]. - Salesforce's diversified cloud portfolio across various applications such as sales, marketing, and customer service has helped stabilize revenue even amid economic uncertainties [4]. - The Subscription and Support segment is projected to generate approximately $9.5 billion in the fourth quarter, reflecting an 8.6% year-over-year growth, indicating strong customer retention and demand resilience [11]. Group 2: Growth Strategies - Salesforce's commitment to innovation in AI, automation, and data analytics positions it well to capitalize on the rapidly growing global AI-driven cloud market [6]. - The company's international expansion strategy has allowed it to tap into increasing demand for digital transformation solutions in global markets, particularly in Europe and Asia-Pacific [7][8]. Group 3: Challenges - Despite strong long-term growth potential, Salesforce faces challenges from macroeconomic pressures, particularly as small and mid-sized enterprises tighten IT budgets [9]. - The company has noted elongated deal cycles, which may lead to smaller deal sizes and delayed revenue recognition in the fourth quarter [10]. Group 4: Profitability Focus - Salesforce's focus on cost efficiency through strategic workforce reductions and operational efficiencies has contributed to margin expansion and profitability growth [12][13].

Core Viewpoint - Artificial Intelligence (AI) is positioned as a transformative technology with significant long-term investment potential, contingent on making informed investment choices Group 1: Nvidia - Nvidia is identified as a leading player in AI infrastructure, benefiting from increased spending on graphic processing units (GPUs) essential for AI model training and inference [2][4] - Major tech companies, including Microsoft, Amazon, Alphabet, and Meta Platforms, are significantly investing in AI infrastructure, with Microsoft planning to spend approximately $80 billion, Amazon $100 billion, Alphabet $75 billion, and Meta up to $65 billion by 2025 [3] - Nvidia holds a dominant 90% market share in the mass-merchant GPU market, supported by its CUDA software platform, which is superior to competitors [4] - The stock is considered attractively valued, trading at a forward P/E ratio of 25 times 2025 estimates and a PEG of 0.5, indicating potential undervaluation [5] Group 2: Alphabet - Alphabet's Google Cloud is a key player in the AI space, with Q4 revenue increasing by 30% to $12 billion and operating income surging 142% to $2.1 billion [7] - The company is expanding capital expenditures to address capacity constraints and has developed custom AI chips (TPUs) to enhance cost efficiency and performance [8] - Alphabet's Gemini 2.0 AI model is now publicly available, enhancing its search capabilities and potentially driving future ad revenue growth [9] - The stock is trading at a forward P/E of 18 times, indicating it is relatively inexpensive [10] Group 3: Salesforce - Salesforce is focusing on agentic AI, which allows AI agents to perform tasks autonomously, enhancing the capabilities of generative AI [11] - The company launched its Agentforce solution, which offers customizable AI agents for various tasks, and has seen strong demand with over 1,000 deals in place shortly after launch [12][13] - The consumption-based pricing model for Agentforce is set at $2 per conversation, presenting a scalable revenue opportunity [13] - Salesforce's stock is trading at a forward P/E of under 26 times with a PEG below 0.6, reflecting an attractive valuation given its growth potential [14]

Core Insights - Salesforce (CRM) is anticipated to report its fourth-quarter results, with analysts optimistic about AI-driven growth opportunities [1][5] - A significant majority of analysts have issued "buy" ratings, with a consensus price target suggesting nearly 30% upside from the current price [1] - The company is projected to achieve revenue of $10.05 billion, reflecting an 8% year-over-year increase, and adjusted earnings per share of $2.62, up from $2.29 a year ago [2] Analyst Ratings and Expectations - Of the 25 analysts covering Salesforce, 20 have a "buy" or equivalent rating, while 5 have a "hold" rating [1] - Deutsche Bank analysts maintain a "buy" rating with a $400 price target, citing early momentum in the Agentforce AI suite [2] - Oppenheimer analysts view the departure of COO Brian Millham as a negative surprise but expect new CFO Robin Washington to enhance operational efficiency [4] Company Developments - Salesforce announced that Robin Washington, former CFO of Gilead Sciences, will join as the new chief operating and financial officer on March 21 [3] - The company has faced a challenging start to 2025, with shares down approximately 7% year-to-date after a strong performance in 2024 [5]

Core Viewpoint - Salesforce is expected to report strong fourth-quarter fiscal 2025 results, driven by digital transformation initiatives and growing demand for AI-enabled cloud solutions [7][8][20] Revenue and Earnings Projections - For the fourth quarter, Salesforce projects total revenues between $9.9 billion and $10.1 billion, with a consensus estimate of $10.04 billion, indicating an 8.1% increase year-over-year [2] - Non-GAAP earnings per share are anticipated to be in the range of $2.57 to $2.62, with a consensus estimate of $2.60, reflecting a 13.5% increase from the previous year [3] Earnings Performance and Trends - Salesforce has beaten the Zacks Consensus Estimate three times in the last four quarters, with an average surprise of 3% [4] - The company currently holds a Zacks Rank 2 but has an Earnings ESP of -1.63%, indicating uncertainty regarding an earnings beat this quarter [5][6] Strategic Initiatives and Market Position - Salesforce's focus on digital transformation and cloud solutions is expected to enhance revenue growth, supported by its strategic acquisitions and expansion into key markets [7][9][10] - The company has made significant acquisitions, including Spiff, Own, and Zoomin, which have diversified its revenue base and enhanced its capabilities [10][18] Product and Service Performance - Revenue estimates for key cloud services include $2.15 billion for Sales, $2.31 billion for Service, $1.9 billion for Platform & Other, $1.36 billion for Marketing & Commerce, and $1.77 billion for Data [11] - Subscription and Support segment revenues are expected to be approximately $9.5 billion, with Professional Services projected at $513 million [11] Profitability and Cost Management - Ongoing cost restructuring initiatives are likely to improve profitability, with a reported non-GAAP operating margin of 33.1% in the third quarter, up 190 basis points [12] Stock Performance and Valuation - Over the past year, Salesforce shares have increased by 8.5%, outperforming the Zacks Computer – Software industry growth of 6.8% [13] - The stock is currently trading at a forward 12-month P/S ratio of 7.33X, which is lower than the industry average of 8.61X, indicating a potential investment opportunity [15] Investment Thesis - Salesforce maintains its leadership in the customer relationship management industry, bolstered by strategic acquisitions and a strong focus on AI initiatives [17][19] - The company is well-positioned to benefit from rising global IT spending, projected to reach $5.61 trillion in 2025, with enterprise software spending expected to grow even faster [20]

In its upcoming report, Salesforce.com (CRM) is predicted by Wall Street analysts to post quarterly earnings of $2.60 per share, reflecting an increase of 13.5% compared to the same period last year. Revenues are forecasted to be $10.04 billion, representing a year-over-year increase of 8.1%.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timefr ...

Salesforce.com (CRM) closed the latest trading day at $318.43, indicating a -1.88% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.47%.The the stock of customer-management software developer has fallen by 2.43% in the past month, lagging the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.The investment community ...

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract t ...

Core Insights - The Big Data industry is experiencing significant growth driven by the increasing demand for data analytics solutions across various sectors, with the global market expected to reach $401.2 billion by 2028 [3]. Group 1: Big Data Fundamentals - Big Data encompasses vast and complex information from diverse sources, which can be structured, unstructured, or semi-structured [1]. - The "six V's" define Big Data: Volume (massive data production), Velocity (speed of data generation), Variety (different data formats), Value (extracting insights), Variability (changing data patterns), and Veracity (data accuracy) [2]. Group 2: Key Players in Big Data - NVIDIA has significantly evolved in the Big Data space, leveraging its GPUs for data-intensive tasks and AI model training, with a strong focus on AI-optimized data center solutions [6][8]. - Salesforce transformed its CRM capabilities by integrating AI and analytics, particularly with the introduction of Einstein AI, enhancing its ability to provide real-time customer insights [9][10]. - Palantir Technologies has expanded its offerings from government to commercial sectors, focusing on AI and machine learning to enhance its data processing capabilities [13][14]. - Moody's has integrated advanced analytics and AI into its risk assessment services, modernizing its infrastructure to provide comprehensive financial insights [16][17]. Group 3: Future Outlook - NVIDIA anticipates continued strong demand for its AI-optimized solutions, particularly with the upcoming Blackwell architecture [8]. - Salesforce expects growth in AI-driven automation, with innovations like Agentforce set to reshape customer interactions [12]. - Palantir's growth is driven by the adoption of AI in business and government, positioning it as a leader in operational intelligence [15]. - Moody's is at the forefront of financial technology, continuously investing in data innovation to enhance its analytics capabilities [19].

The next step forward for AI will come from these companies.Artificial intelligence has transformed entire industries in just a few short years. From the rise of machine learning to the most advanced generative AI, the technology has seeped into just about every business over the last decade.If the last decade has taught us anything, it's that technology never stands still. Many companies are looking to build on the breakthroughs of generative AI to develop a new AI revolution: agentic AI.AI agents aren't j ...

Salesforce's valuation has fluctuated quite a bit over the last couple of years.For the last two years, technology stocks have been rocking thanks to an overwhelmingly bullish narrative surrounding artificial intelligence (AI). Among AI's biggest winners have been software businesses, a theme that I don't see changing anytime soon.Below, I'm going to compare two of the biggest names in enterprise software benefiting from the AI revolution: Palantir Technologies (PLTR 1.06%) and Salesforce (CRM -1.00%). Whil ...