Core Viewpoint - The recent decline in software stocks is viewed as a buying opportunity rather than a catastrophic event for the industry, according to Wedbush analyst Dan Ives [1][2]. Industry Overview - The current market sentiment is overly pessimistic, with fears of an impending disaster for software companies being exaggerated [3]. - Concerns about AI's impact on earnings growth, competition, and enterprise adoption have resurfaced amid the sharp market pullback, which is the worst since the "Liberation Day" crash [2]. Company Summaries Microsoft Corp. - Microsoft closed at $414.19, down over 12% year-to-date, with its future tied to Azure cloud growth and its partnership with OpenAI [8]. - Ives projects a price target of $575, believing Microsoft will be a core winner in the AI revolution [9]. Palantir Technologies, Inc. - Palantir's stock has decreased more than 16% year-to-date, closing at $139.54, as it focuses on data analytics and AI software for governments and enterprises [10]. - Ives sets a price target of $230, suggesting Palantir has the potential to reach a trillion-dollar market cap [11]. Snowflake, Inc. - Snowflake has experienced a significant sell-off, dropping over 23% year-to-date, closing at $165.29, amid increased competition in cloud-based data storage and analytics [12]. - Ives expects Snowflake to outperform with a target price of $270, emphasizing its role as a trusted layer for enterprise data [13]. Salesforce, Inc. - Salesforce is down more than 21% year-to-date, closing at $199.44, as it integrates AI tools into its customer relationship management software [14]. - Ives believes Salesforce remains well-positioned for long-term success with a price target of $375, highlighting its strong market opportunity [15]. CrowdStrike Holdings, Inc. - CrowdStrike closed at $415.36, down over 8% year-to-date, as it continues to address rising cybersecurity threats linked to AI and cloud adoption [16]. - Ives sets a price target of $600, asserting that CrowdStrike's position as a cybersecurity leader remains strong despite market challenges [18].

Core Insights - Varonis Systems, Inc. has launched AI identity protection for Salesforce Agentforce, enhancing visibility and control over data accessed by AI agents [1][2] - The new features allow organizations to assess and manage AI agent risks while ensuring the security of sensitive data [1][2] Product Features - The capabilities include automatic discovery and cataloging of AI agents, providing a unified view of data sensitivity, permissions, and activity [9] - Varonis enables organizations to enforce least privilege access by analyzing prompts and responses for sensitive data exposure and policy violations [9] Market Position - Varonis is recognized as a leader in data security, focusing on protecting data across various environments including SaaS, IaaS, and hybrid cloud [6][7] - The company offers a range of security solutions such as data security posture management, data classification, and identity protection [7]

Core Viewpoint - Salesforce, Inc. has experienced a significant decline of over 15% in the past month, underperforming the broader Zacks Computer – Software industry, which fell by 9% during the same period [1][2]. Group 1: Recent Performance and Market Context - The recent drop in Salesforce's stock price raises questions about whether investors should exit or hold onto the stock, with long-term growth prospects still considered intact [3]. - The decline is attributed to broader market weakness and company-specific issues, including a sell-off in tech stocks due to fears of trade tensions and slowing economic growth [4]. - Salesforce's fourth-quarter fiscal 2025 results showed a revenue growth of 7.5% year over year to $9.99 billion, slightly missing the Zacks Consensus Estimate, with guidance indicating further revenue growth slowdown to 6-8% for fiscal 2026 [5]. Group 2: Market Position and Competitive Landscape - Despite recent struggles, Salesforce remains the leader in the customer relationship management (CRM) space, outpacing competitors like Microsoft, Oracle, and SAP, and holding the largest market share according to Gartner [7]. - The company has built a robust ecosystem that integrates across enterprise applications, with strategic acquisitions like Slack and Own Company aimed at expanding its reach beyond CRM [8][9]. Group 3: Growth Drivers and Future Outlook - AI is a crucial component of Salesforce's growth strategy, with the launch of Einstein GPT in 2023 embedding AI capabilities across its platform, enhancing customer interactions and decision-making [10]. - Global IT spending is projected to reach $5.61 trillion in 2025, with enterprise software expected to grow by 14.2%, indicating steady demand for Salesforce's solutions despite short-term economic uncertainties [11]. - Salesforce's current valuation at a forward P/E of 24.21 is below the industry average of 27.71, suggesting that much of the recent pessimism is already reflected in the stock price [12]. Group 4: Investment Recommendation - Given Salesforce's dominant market position, ongoing AI initiatives, and strong long-term growth potential, the recent stock pullback does not warrant an exit, making it a stock worth holding [13][14]. - While near-term growth may be slower, the long-term investment case for Salesforce remains robust, supporting a hold strategy for investors with a long-term view [15].

Group 1 - The article discusses the benefits of subscribing to Beyond the Wall Investing, which provides access to high-quality equity research reports and analysis [1] - Salesforce, Inc. (NYSE: CRM) was highlighted with a "Buy" rating in mid-July 2024, despite trading at a forward P/E of 25x, indicating a potential buying opportunity [1] - The investing group offers features such as a fundamentals-based portfolio, weekly insights from institutional investors, and alerts for short-term trade ideas based on technical signals [1] Group 2 - The article emphasizes that the analyst has no current stock or derivative positions in the companies mentioned, ensuring an unbiased perspective [1]

Core Insights - Salesforce, Inc. (NYSE: CRM) is recognized as a strong company with wide moats, solid fundamentals, and reliable growth characteristics that support its status as a compounder [1] Group 1 - The company is characterized by its wide economic moats, indicating a strong competitive advantage [1] - Solid fundamentals are highlighted, suggesting a stable financial position and operational efficiency [1] - The company demonstrates very reliable growth, which is essential for long-term investment potential [1]

I downgraded Salesforce, Inc. (NYSE: CRM ) to a “Sell” rating in May 2024, discussing its slowdown in current remaining performance obligation ((cPRO)) growth. While Salesforce’s Data Cloud & AI generated $900 million in annual recurring revenue, the business is still in the infant stage and only presentsAnalyst’s Disclosure: I/we have a beneficial long position in the shares of CRM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. ...

Financial Data and Key Metrics Changes - The company reported a record revenue of $37.9 billion for fiscal year 2025, representing a 9% year-over-year increase in both nominal and constant currency [75][26] - Q4 revenue reached $10 billion, up 8% year-over-year, with a 9% increase in constant currency [21][75] - Operating cash flow for Q4 was nearly $4 billion, up 17% year-over-year, while full-year operating cash flow reached a record $13.1 billion, up 28% year-over-year [82][27] - Non-GAAP operating margin for Q4 was 33.1%, an increase of 170 basis points year-over-year, while GAAP operating margin was 18.2%, up 70 basis points year-over-year [81][27] - Remaining performance obligation (RPO) surpassed $60 billion for the first time, ending Q4 at $63.4 billion, up 11% year-over-year [83][28] Business Line Data and Key Metrics Changes - Data Cloud and AI annual recurring revenue reached $900 million, growing nearly 120% year-over-year [79][12] - The company closed more than 3,000 paid Agentforce deals in Q4, indicating strong adoption of the new product line [79][12] - Sales Cloud and Service Cloud both achieved double-digit growth in Q4, with Slack included in over a third of deals over a million dollars [62][63] Market Data and Key Metrics Changes - Revenue growth in the Americas was 8% in both nominal and constant currency, while EMEA grew 6% to 7% in constant currency, and APAC grew 10% to 14% in constant currency [76][77] - New business growth was strong in Latin America, Japan, and Canada, while parts of EMEA remained constrained [77] Company Strategy and Development Direction - The company is focused on a unified platform strategy that integrates Customer 360 apps, Data Cloud, and Agentforce, aiming to lead the digital labor revolution [54][15] - The company plans to continue investing in high-growth opportunities, particularly in Agentforce and Data Cloud, while maintaining a disciplined approach to margin expansion [91][90] - The company expects to deliver fiscal year 2026 subscription support revenue growth of approximately 9% year-over-year in constant currency [87] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the growth and innovation seen in fiscal year 2025, highlighting the strong performance across key metrics [9][7] - The management team anticipates that the digital labor revolution could represent a market opportunity ranging from a few trillion to 12 trillion dollars [14] - The company expects to see continued momentum in AI and Data Cloud, with a focus on embedding these technologies into everyday workflows [78][79] Other Important Information - The company executed $7.8 billion in share repurchases and issued $1.5 billion in dividends during fiscal year 2025 [85] - The management team is undergoing a transition, with Robin Washington stepping in as the new Chief Operating and Financial Officer [74][49] Q&A Session Summary Question: Can you provide insights on the Agentforce pricing model and its impact on contract sizes? - Management indicated that the pricing model is evolving from a seat-based model to a consumption-based model, which is expected to expand overall contract sizes and provide significant upside to pricing structures [100][106][118] Question: Is Agentforce creating a halo effect on other products? - Management confirmed that Agentforce is positively impacting the usage of core technology, leading to new workflows and increased engagement across other products [125][128] Question: What is the rationale behind combining the COO and CFO roles? - Management expressed excitement about the new COO and CFO, Robin Washington, highlighting her unique capabilities to manage both roles effectively [134]