We recently published 13 Latest Stocks on Jim Cramer’s Radar. Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer recently discussed. Like Adobe, Salesforce, Inc. (NYSE:CRM) is also a software-as-a-service (SaaS) stock that Jim Cramer has started to frequently discuss lately. He commented on the firm in detail after its latest earnings report. Cramer was somber that while Salesforce, Inc. (NYSE:CRM) was a “great” company, it had unfortunately gotten caught up in the narrative that AI would threate ...

There also seems to be uh you know an idea out there and you see it in the valuation of the company Palanteer. This idea that that's the future of software. It's disrupting software and it's doing so without a marketing team.Oh my gosh, I am so inspired by that company. I mean not just because they have a hundred times uh uh you know multiple on their revenue which I would love to have that too. Maybe it'll all have a thousand times on their revenue soon, but the prices that they charge to their customers, ...

AI转型与业务增长 - Salesforce 认为所有公司都将转变为智能企业，利用AI和数据技术实现下一代成果 [3][6] - Agent Force 产品线（包括 Data Cloud）收入超过 10 亿美元，并以三位数增长 [3] - AI 代理在过去 9 个月内回答了 150 万个客户问题，与人工座席的客户满意度评分基本相同 [8] - 公司通过 AI 试点项目转化为实际生产的转化率加速了 60% [13] - 预计公司本年度现金流将达到 150 亿美元，为企业软件行业最高 [5] 劳动力结构调整 - 公司正在经历劳动力结构的重新平衡，客户支持人员减少，销售人员增加 [16][17] - AI 不是要取代工作，而是要重塑业务，公司将根据人工智能的力量进行结构调整 [18][19] 业务模式与竞争 - Salesforce 认为 AI 正在重塑业务和技术模式，但并非颠覆，而是渐进式发展 [23][24] - Salesforce 赢得了一项与 Palantir 竞争的美国陆军大型交易 [27] - 公司看到 Agentic 政府的巨大机遇，类似于 Agentic 企业，通过 AI 扩展政府机构的能力 [29] 收购与未来展望 - Salesforce 过去已完成超过 60 项收购，并认为收购是企业成功的风险投资，但管理得当会为公司和客户带来巨大的好处 [31][34] - 公司希望在 2030 年成为智能企业值得信赖的合作伙伴，帮助各种规模的企业和政府实现转型 [35]

Core Insights - Salesforce is experiencing significant growth, particularly in its Agent Force product line, which has surpassed $1 billion in revenue and is growing at triple-digit rates [3][5][13] - The company is transitioning into an "agentic enterprise," leveraging AI and data technology to enhance operational efficiency and customer service [3][12][36] - There is a strong demand for AI capabilities among customers, with a notable acceleration in the conversion of AI pilots to production [13][15] Financial Performance - Salesforce is projected to generate over $41 billion in revenue this year, with cash flow expected to reach $15 billion, the highest in the enterprise software industry [5][18] - The company reported a 10% growth in revenue, with a 9% increase in constant currency, driven by new products and capabilities [13][18] Workforce Transformation - The integration of AI has led to a reduction in customer support agents from 6,000-8,000 to 4,000-5,000, while increasing the number of salespeople by 3,000-4,000 [16][17] - The collaboration between AI agents and human employees is enhancing service delivery and operational effectiveness [9][12][19] Market Position and Strategy - Salesforce aims to be a trusted partner for businesses undergoing AI transformations, catering to various sectors including small, medium, and large enterprises, as well as government agencies [35][36] - The company is exploring both organic and inorganic growth opportunities, with a history of successful acquisitions, such as Slack, which has significantly increased in revenue since its purchase [30][33] Industry Trends - The narrative that AI is disrupting software is viewed as a shift rather than a complete overhaul, with AI reshaping business models and operational structures [23][24][35] - There is a growing recognition that AI can enhance rather than eliminate jobs, leading to a rebalancing of workforce dynamics [19][24]

Core Insights - Marc Benioff, CEO of Salesforce, is closely monitoring Palantir due to significant investor interest in the company [1] - Benioff expressed admiration for Palantir's impressive revenue multiples, noting that the company has a 100 times revenue multiple and hopes for even higher multiples in the future [2] - Salesforce's revenue is over $10 billion in the latest quarter, making it ten times larger than Palantir, which is experiencing a growth rate of 48% compared to Salesforce's 10% [2] - Benioff commented on Palantir's pricing, describing it as the most expensive enterprise software he has encountered [3]

We recently published 10 Buzzing AI Stocks to Watch in September. Salesforce, Inc. (NYSE:CRM) is one of the stocks to watch in September. Bryn Talkington, managing partner at Requisite Capital Management, explained in a recent program on CNBC why she bought Salesforce shares. “Salesforce is Uber in the 60s. And Marc Benioff has been very clear. Let’s focus on free cash flow. Let’s focus on margins. Let’s focus on growth and financial stability. I think what they’re doing, I think the market is completely ...

Global Market Overview - The Hang Seng Index closed at 26,086, down 0.43% for the day but up 30.04% year-to-date [1] - The Shanghai Composite Index rose by 1.65% to 3,875, with a year-to-date increase of 15.62% [1] - The US markets saw the Dow Jones increase by 1.36% to 46,108, with a year-to-date gain of 8.38% [1] Sector Performance - In the Hong Kong market, the healthcare, energy, and consumer discretionary sectors led the decline, while materials, utilities, and industrials saw gains [3] - The semiconductor and rare metals sectors performed notably well, with significant inflows from southbound funds amounting to HKD 189.89 billion [3] Economic Indicators - The European Central Bank (ECB) maintained interest rates and revised down its inflation forecast for 2027 to 1.9% [3] - The US Consumer Price Index (CPI) showed a month-on-month increase of 0.4% and a year-on-year increase of 2.9%, aligning with market expectations [3] Investment Recommendations - Geely Automobile is rated as a "Buy" with a target price of HKD 25.00, representing a potential upside of 33% [4] - Luckin Coffee is also rated as a "Buy" with a target price of USD 44.95, indicating a 19% upside [4] - Semiconductor companies like Horizon Robotics and Beike Micro are rated as "Buy" with target prices of HKD 12.30 and HKD 93.00, respectively, showing potential upsides of 19% and 76% [4]

Inflation and Economic Context - The latest inflation data indicates a 2.9% annual increase, with a 0.4% monthly gain in August, marking the largest monthly increase since January [1] - Jim Cramer highlighted that while some areas like shelter are problematic, energy prices are providing some relief [1] - The overall economic picture is complex, with certain persistent issues affecting consumer sentiment [1] Adobe Inc. (NASDAQ:ADBE) - Adobe's shares have declined by 20% year-to-date, attributed to a potential shift in investor sentiment towards software-as-a-service (SaaS) stocks [6] - Cramer noted that Adobe's products, while high quality, are facing competition from similar offerings, leading to questions about their indispensability [6][7] - There is a need for Adobe to articulate its long-term strategy and competitive advantages in the face of emerging threats [8] Salesforce, Inc. (NYSE:CRM) - Salesforce is also experiencing challenges as a SaaS company, with Cramer expressing concerns about the impact of AI on its business model [9] - Similar to Adobe, Salesforce must clarify its value proposition and how it plans to maintain relevance in a changing market [10] - Cramer emphasized the importance of leadership in addressing these challenges and communicating a clear strategy to investors [10]

Group 1 - Salesforce laid off approximately 4,000 employees from its customer support division as it shifts focus to AI-powered automation, indicating a trend among tech giants to replace human workers with AI agents [1] - Other tech companies, including Microsoft, Klarna, and Duolingo, have also reduced their workforce in favor of AI, highlighting a broader industry trend towards automation [2] - A survey by Resume Now revealed that 89% of workers are concerned about job security due to AI advancements, with fears centered around AI over-reliance and workplace dehumanization [3] Group 2 - More than half of surveyed workers reported that their employers were only "somewhat transparent" about AI plans, leading to increased anxiety and speculation [4] - Effective communication and training for roles that AI cannot replicate are essential for maintaining trust between employers and employees [4] - Despite the advancements in AI, its capabilities are uneven, and employers should not assume that AI can fully replace human workers [5] Group 3 - A recent survey indicated that 44% of workers expect AI to automate parts of their jobs by the end of the decade, particularly in customer service, data entry, and administrative support [6] - Roles that require creativity, complex problem-solving, or emotional intelligence, such as those in healthcare, education, and leadership, are less likely to be automated [6]

Core Insights - Salesforce co-founder and CEO Marc Benioff highlighted the rapid growth of the company's AI agent technology, with over 12,000 AgentForce customers and $1.2 billion in revenue, marking a triple-digit growth rate [1][2] - The company anticipates third-quarter sales growth to slow to 8%-9%, down from 10% in the second quarter, while current remaining performance obligations rose 11% to $29.4 billion [2] - Salesforce has successfully taken government business from Palantir, with Benioff expressing confidence in the company's pricing strategy and aiming for double-digit growth rates [3][4] Company Performance - Salesforce's full-year non-GAAP operating margin guidance was raised slightly to 34.1% from 34% [2] - Despite a 24% decline in shares year-to-date, over 60% of sell-side analysts rate Salesforce stock as a Buy [4] - The company trades at an attractive 15x 2026E estimated enterprise value/free cash flow, compared to peers at 28x, indicating a 47% discount [5] Market Context - Concerns exist regarding the pace of AI demand amid a slowing US economy and fears that AI may disrupt traditional software [1][4] - Analysts believe that fears of AI negatively impacting the software industry are overblown, although Salesforce's ability to monetize AI will be crucial for its stock performance [5]