Salesforce has become a cash flow story. Despite recent market volatility, I view CRM as being recession-resistant and a clear buying opportunity due to its robust business model. Consensus estimates may be optimistic, but I expect CRM to sustain 35%-40% net margins, offering potential for double-digit returns and possible multiple expansion.
Salesforce.com (CRM) closed at $267.92 in the latest trading session, marking a +1.22% move from the prior day.
Salesforce's NYSE: CRM stock price corrected more than 35% from its high to its low in Q2 2025 and could certainly move lower, but is unlikely to do so. The stock price reset is primarily due to fears of a slowdown in the global economy, compounded by analyst price target adjustments, and factoring in the worst of a worst-case scenario.
The Investment Committee give you their top stocks to watch for the second half.
The Investment Committee give you their top stocks to watch for the second half.
Recently, Zacks.com users have been paying close attention to Salesforce.com (CRM). This makes it worthwhile to examine what the stock has in store.
Salesforce has dropped more than 30% from peaks, overcorrecting the stock despite attractive new products. The company has signed up thousands of Agentforce AI customers within the first quarter post-launch. Now trading at a ~21x forward P/E and ~5x forward revenue, the company trades well below many other large-cap software peers with similar growth trajectories.
Cloud giant Salesforce Inc (NYSE:CRM) was last seen down 4.3% to trade at $236.60 today, after a downgrade from D.A.
Amidst the market volatility due to tariffs and trade tensions, many top tech companies are now selling at much more attractive valuations than just a few months ago.
Salesforce's AI-powered Agentforce platform drives efficiencies, boosts customer satisfaction, and is seeing strong early adoption, with over 3,000 customers onboarded and significant internal productivity gains. Transitioning to a hybrid pricing model, Salesforce's consumption-based approach for AI agents and data usage introduces revenue unpredictability but aligns with industry trends and supports scalability. Salesforce reported robust financials for FY25, with $37.9 billion in revenue, a 33% non-GAAP operating margin, and a 50% YoY net income increase, showcasing strong operational leverage.
The latest trading day saw Salesforce.com (CRM) settling at $247.23, representing a -1.05% change from its previous close.
T-Mobile, Salesforce, Alibaba and Old Point Financial are included in this Analyst Blog.