salesforce(CRM) The Motley Fool·2025-01-26 09:44Group 1: Stock Splits and Market Sentiment - Stock splits are often indicators of quality businesses, as they typically occur after significant share price appreciation, which is uncommon for poor-performing companies [1] - Meta Platforms and Salesforce have seen substantial price increases of 350% and 115% respectively over the last two years, making them candidates for stock splits in 2025 [1] - Analysts are generally bullish on both companies, with expectations of material upside [1] Group 2: Meta Platforms - Meta Platforms owns four of the seven most popular social media platforms, allowing it to collect data and target advertising effectively, making it the second-largest ad tech company globally [3] - The company reported a 19% increase in revenue to 6.03 per diluted share [4] - AI investments have led to an 8% increase in time spent on Facebook and a 6% increase on Instagram, with Meta AI projected to become the most used AI assistant by the end of 2024 [5] - Meta's earnings are expected to grow at 15% annually through 2025, making its current valuation of 30 times earnings appear reasonable for long-term investors [6] Group 3: Salesforce - Salesforce holds a 22% market share in the CRM software market, surpassing its next four competitors combined [7] - The company reported an 8% revenue increase to 2.41 per diluted share [9] - Salesforce launched Agentforce, an AI-powered platform that allows digital labor to operate autonomously, enhancing its competitive edge [10] - Wall Street expects Salesforce's adjusted earnings to grow at 12% annually through fiscal 2026, although its current valuation of 34 times adjusted earnings may seem high [10] - Salesforce has consistently beaten consensus earnings forecasts by an average of 4% over the last six quarters, indicating potential for future growth [11]