What Makes Salesforce (CRM) an Attractive Investment Option?

Core Insights - L1 Capital International Fund's fourth-quarter 2025 investor letter emphasizes the importance of valuation analysis for AI-focused investments, indicating that mere conviction in AI is insufficient for successful outcomes [1] - The fund achieved a return of 2.2% for the quarter and 9.8% for the year 2025, underperforming the benchmark MSCI World Net Total Return Index, which returned 2.5% and 12.4% respectively [1] Company-Specific Insights - Salesforce, Inc. (NYSE:CRM) was highlighted as a key investment, with a one-month return of -7.09% and a 52-week loss of 25.13%, closing at $239.57 per share with a market capitalization of $228.071 billion as of January 14, 2026 [2] - The fund initiated a position in Salesforce during the December 2025 quarter, citing its leadership in customer relationship management software and a highly profitable business model, despite a share price decline of over 35% from its late-2024 peak [3] - Salesforce is expected to achieve high single-digit revenue growth and earnings per share growth in the teens over the medium term, with the fund viewing it as an attractive risk-adjusted return opportunity [3] - In the third quarter of 2026, Salesforce reported revenue of $10.26 billion, reflecting a year-over-year increase of 9% and 8% in constant currency, although some analysts believe other AI stocks may offer greater upside potential [4]