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NYSE:CRM

SalesForce.com Inc. (CRM)

152.26
+0.48 (0.32%)
as of Jun 18, 2026, 11:59:20 pm Market Open.
127 watching
0
WAIT
When he looks at the NASDAQ-100, he finds they are at almost 50% premiums to fair market values. As long as we have bull market conditions this should continue. If we have a nasty bear market then their could be a fall like in 2008, after which it recovered.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly Morgan Stanley and Bank of America have both recently called for a move towards $273-$275 for the CRM share price. Analysts expect organic growth of 17% annually to continue for the customer relationship management solution company. It continues to build cash reserves, estimated up over $2 billion over the past year, to over $6 billion in total. We would buy this with a stop loss at $190, looking to achieve $275 -- upside potential over 20%. Yield 0% (Analysts’ price target is $273.63)

COMMENT

They report a super report last time, yet nobody cared. Maybe it's due to them still needing to close the Slack deal. Be careful. They report Thursday.

BUY ON WEAKNESS

It passes the Rule of 40: Revenue growth rate + EBITDA margin. If the sum is greater than 40, the company passes. This means, the company can get away with rapid revenue growth and no profitability, or slower revenue growth and high profitability--two ways to win. A senior growth name, though it hasn't been a high-flyer in a long time. It trades at less than 10x sales, but has been stuck in a holding pattern ever since buying Slack late last year. You can buy this for the long-term.

BUY

The Slack acquisition isn't not liked by many, but the CEO is one the best acquirers around, so he thinks it will pay off.

TOP PICK
Cloud and edge computing. Price target of $276 in 12 months. Buy in thirds at $220, 210, and 200. No dividend. (Analysts’ price target is $273.54)
DON'T BUY

They paid a high price for Slack. She owns MSFT instead of CRM. It comes down to valuation, so if CRM's PE falls, it may be worth owning. Buy a MSFT instead.

BUY

Deferred revenues are a key metric and theirs is much better than expected. Fears of the Slack purchase holding back CRM stock is wrong. Their CEO is good at integrating big deals. This deal can lead to strong cross-selling potential

TOP PICK

Doesn't get loved like Google or Microsoft. They were chastised for buying Slack at a high price, so the share price consolidated, but in recent weeks CRM has broken out. CRM will continue to deliver and move up to $300 with 20% upside relatively soon. (Analysts’ price target is $274.62)

BUY ON WEAKNESS

They've bought a lot of businesses, including Slack. How will they integrate it? Some integrations haven't worked. To compete with Micorsoft in teams and office products, CRM needs to acquire more businesses in coming quarters and even years. This is the big point. The stock may be volatile. That said, CRM has grown very aggressively in recent years. He expects a pullback in coming quarters due to hiccups in acquisitions.

BUY ON WEAKNESS
Allan Tong’s Discover Picks CRM stock is good at buying and integrating companies, such as last month's purchase of the popular Slack platform for $27.7 billion. Salesforce revenues have doubled since 2017 and it's beaten or matched EPS in its last four quarters. So, why isn't Salesforce a screaming buy? The CRM stock's PE is 56x. To be fair, that's a lot better than 92.91x a quarter ago and certainly 200x a year ago. To compare to other tech stocks, Adobe trades at 43.75x and Microsoft at 36.66x. Read Hit and Misses: 5 Tempting Tech Stocks for our full analysis.
DON'T BUY
He follows it, but the valuation doesn't make sense. Valuations may not matter in the short term, but at the end of the day they do. They need to generate cashflow earnings to justify the valuation, or the valuation needs to come down. Great company, but too expensive.
HOLD
Leader in its category of customer management software. Great company, though not cheap.
BUY

Investor day is coming this Tuesday. Contrary to the street, he thinks the Slack deal made sense. Slack products are terrific and SF needs them to go toe to toe with Microsoft. Slack is a serious company that just reported a fine quarter, though nobody paid attention. Salesforce has a good record in takeovers. The CEO knows what he's doing.

WEAK BUY

Great software company as we move to the cloud. Dominate their sector. A great hold. You could probably buy and hold and make money. He holds Twilio instead.

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