CRM - Salesforce: This Is A Golden Buying Opportunity
2024-05-31 11:02:17 ET
Summary
- Salesforce's stock plunged 20% after FQ1 earnings and a weak outlook for Q2 revenue growth.
- Despite missing top-line estimates, Salesforce's free cash flow is surging for which the company didn't get any credit at all.
- The market overreacted to the revenue forecast, creating an attractive opportunity for long-term investors due to Salesforce's surging free cash flow and expanding FCF margins.
- With only a 20X P/E ratio, Salesforce has considerable revaluation potential and I am buying the drop.
Shares of CRM applications provider Salesforce (CRM) plunged 20% after the company disappointed with its FQ1’25 earnings sheet on Wednesday. Specifically, Salesforce missed top line estimates, which are especially important for fast-growing software companies, and the company’s outlook for the second fiscal quarter was also a bit weak. However, other metrics such as free cash flow and share repurchases looked very strong, and I really do believe that long term-minded investors are confronted with an extremely attractive engagement opportunity here!...
Salesforce: This Is A Golden Buying Opportunity