CRM - Time to Buy the Dip on Salesforce Stock?
2024-06-09 03:29:00 ET
Shares of Salesforce (NYSE: CRM) stock took a more than 20% hit after the last earnings update. Co-founder and CEO Marc Benioff has made an incredible pivot from all-out revenue growth to all-out profit margin expansion the last couple of years, but no amount of enthusiasm could cheer investors up this round of quarterly updates. It seems that everyone is worried that artificial intelligence (AI) could become a headwind , not a hyped-up reason for the never-ending growth that it has been over the last year-plus.
Several other software stocks have been clobbered lately for much the same reason. However, Salesforce could have strengths that many of these peers lack. Is it time to buy the dip?
Salesforce has built itself into a massive customer relationship management and general data management platform. Data, as it so happens, is the key fuel organizations need for the current generative AI craze. Benioff and company talked up Salesforce's big opportunity in the years ahead due to the massive amount of customer data it helps the users of its software platform with. But the market wasn't buying it.
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Time to Buy the Dip on Salesforce Stock?