SNOW - Salesforce: Company Has Become A Show Me Story
2024-06-04 05:54:33 ET
Summary
- Salesforce's Q1 performance fell short of expectations, with missed revenue estimates and weaker guidance for Q2.
- The potential of Salesforce's AI tools, particularly Data Cloud, has not translated into significant top-line growth.
- Slow adoption of AI among enterprises and the high cost of AI tools are hindering Salesforce's ability to attract big deals.
Investment Thesis
The last time I wrote about Salesforce (CRM)(CRM:CA), back in March 2024, I talked about the company’s Q4 performance and discussed the potential of the company’s AI-related tools, Data Cloud and Einstein Copilot, to be the catalysts for the company's next leg of growth. I had a Buy rating on the stock. Since my article was published, the stock has unfortunately tanked 26%, significantly underperforming the S&P 500, which gained 3% during the same period. The 26% decline includes the 20% decline seen in the stock post its Q1 report. ...
Salesforce: Company Has Become A Show Me Story