Core Viewpoint - The software-as-a-service (SaaS) sector is experiencing significant turmoil due to fears of disruption from artificial intelligence (AI), but these fears may be exaggerated, presenting potential investment opportunities in select software stocks. Group 1: AppLovin - AppLovin has seen a stock price increase of 71% over the past year, yet it currently trades nearly 22% below its 52-week high [2][3] - The company is experiencing rapid revenue growth, particularly from its AI-powered Axon-2 adtech platform, which grew 68% year over year last quarter, enhancing gross margins and profitability [3] - Management plans to expand the platform beyond mobile gaming and introduce a self-serve ad manager, which are expected to be growth catalysts [3] Group 2: Salesforce - Salesforce aims to lead in agentic AI by launching Data Cloud (now Data 360) and acquiring Informatica, positioning itself as the master record of organizational data [4][5] - The stock has decreased by about 28% over the past year, attributed to concerns over slowing core growth and increased competition, making it relatively cheap with a forward P/S multiple below 5 and a forward P/E ratio of 18 [5] Group 3: Workday - Workday claims to have the "largest and cleanest" human resource and finance database, which is crucial in the AI era [6] - The company is introducing AI agents and tools for finance, legal, and HR, and has acquired Paradox to enhance its hiring process [7] - Workday's stock has fallen nearly 24% over the past year, but it is trading at a forward P/S ratio below 5 and a forward P/E of 18, indicating it is undervalued [7] Group 4: GitLab - GitLab operates a DevSecOps platform and has seen its stock decline about 45% over the past year due to fears that AI may reduce the need for coders [9] - Despite these concerns, the company has consistently grown its revenue by 25% or more, driven by an increasing enterprise customer count [10] - The launch of its Duo Agent solution and a new hybrid pricing model could serve as growth catalysts, with the stock trading at a forward P/S multiple under 5.5 [10] Group 5: UiPath - UiPath's stock has decreased about 24% from its 52-week high, but the company is transitioning to become an AI orchestration platform [11] - The Maestro platform is designed to manage AI agents and software bots, addressing the need for governance and compliance as AI agents proliferate [13] - The stock is attractively valued, with a forward P/S multiple below 5 and a forward P/E around 20 [14]

Core Insights - Salesforce, Inc. (NYSE:CRM) is recognized as one of the top AI stocks to monitor in December 2025 [1] - Analyst sentiment remains predominantly bullish, with approximately 80% of analysts maintaining a positive outlook and a median price target of $327.50, indicating a potential upside of 26.19% [2] Financial Performance - For fiscal Q3 2026, Salesforce reported a 9% year-over-year revenue increase to $10.3 billion, aligning with analyst expectations [4] - Operating cash flow increased by 17% year-over-year to $2.3 billion, while free cash flow rose by 22% year-over-year to $2.2 billion [4] - The growth was significantly driven by the Agentforce and Data Cloud portfolios, with annual recurring revenue (ARR) surging by 114%, showcasing strong momentum in AI-focused products [4] Analyst Ratings - RBC Capital reiterated a "Sector Perform" rating with a price target of $250, citing strong execution and growing momentum in AI-driven workflows [3] - CMB International's analyst Saiyi He maintained a "Buy" rating with a target of $392, driven by the company's expanding product breadth and confidence in its long-term financial trajectory [5] Strategic Positioning - Salesforce's platform facilitates automation, intelligence, and growth, enabling organizations to function as agentic enterprises by integrating humans, AI agents, applications, and data [6]