Evaluate the expected performance of Salesforce.com (CRM) for the quarter ended April 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
The growing adoption of generative AI-enabled solutions and continued cloud migration are likely to have aided CRM's Q1 performance.
While it's still some distance from its all-time high around the $370 mark, the stock is setting up well, and a strong report could be the catalyst that gets it there by the end of June.
Salesforce's growth has decelerated for three straight quarters, with Agentforce yet to deliver on its AI-driven acceleration promises. Despite CEO Benioff's hype, tangible financial results from Agentforce remain limited, and margin expansion has stagnated. Valuation appears stretched given slowing growth, with shares trading at a premium to faster-growing peers like Microsoft and SAP.
Salesforce fundamentals remain robust, with strong profitability, expanding market share, and leadership in a potentially explosive AI agents niche. CRM's balance sheet is healthy, R&D investment is rising, and its dominance in customer relationship management is growing, fueling long-term value creation. Valuation is highly attractive: my DCF model suggests a 54% upside, with a fair value of $442 per share, far above current levels.
Salesforce.com (CRM) closed the most recent trading day at $287.63, moving -1.21% from the previous trading session.
Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
Salesforce plans to acquire Convergence.ai to accelerate the development of its next-generation AI agents. The company signed a definitive agreement for the acquisition and expects Convergence's team and technology to play a “central role” in advancing its AI agent platform, Agentforce, according to a Thursday (May 15) press release.
Zacks.com users have recently been watching Salesforce.com (CRM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
CRM's leading role in enterprise software, active AI developments, solid long-term outlook and reasonable valuation support a hold strategy for the stock.
The latest trading day saw Salesforce.com (CRM) settling at $278.23, representing a +1.78% change from its previous close.
Zacks.com users have recently been watching Salesforce.com (CRM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.