Salesforce: Anthropic And Claudeforce Crush The Bear Thesis

Julian Lin Investing Group Leader Follow Summary Salesforce remains a strong buy, driven by resilient growth and a transformative partnership with Anthropic to enhance its AI capabilities. CRM delivered 11% YoY revenue growth and raised full-year guidance to $46.4 billion, with management expressing optimism about the Claudeforce AI launch. Despite margin contraction from acquisitions, I anticipate expanding net margins to at least 40% over time, supported by AI-driven efficiencies. At 15x earnings and ~2.2x debt/EBITDA, CRM offers potential 15%+ annual returns, with upside from multiple expansion if growth and margins outperform. Looking for a portfolio of ideas like this one? Members of Best Of Breed Growth Stocks get exclusive access to our subscriber-only portfolios. Learn More » Stephen Lam/Getty Images News The tides have turned in a drastic way. It feels like just yesterday when the market was screaming that software stocks were dead, but that was just earlier this year. Salesforce ( CRM ) has shown This article was written by Julian Lin 38.1K Followers Follow Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more. Analyst’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. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.