Cloud Computing Pioneer Salesforce Poised for Next Stage of Growth
Salesforce, a trailblazer in cloud software since its founding in 1999, has long dominated the customer relationship management (CRM) software landscape. As the broader software sector matures, Salesforce’s revenue growth has slowed. However, the company has recently made a groundbreaking move, tapping into the emerging agentic artificial intelligence (AI) technology.
Breaking New Ground with Agentforce
In September, Salesforce introduced Agentforce, its own agentic AI tool, which could supercharge the company’s next stage of growth. This innovative technology has caught the attention of Wall Street analysts, including TD Cowen’s Derrick Wood, who upgraded Salesforce from a hold to buy and lifted his price target from $380 to $400.
A Buying Opportunity in the Making
The investment firm noted the recent pullback in the stock, setting up a buying opportunity for Salesforce. Moreover, they observed high levels of interest in Agentforce among Salesforce’s customer base, indicating significant potential for growth.
Guidance and Growth Prospects
Although Salesforce’s guidance for the fourth quarter didn’t indicate a bump from Agentforce, management is clearly bullish on the potential of this technology. CEO Mark Benioff envisions products like Agentforce revolutionizing global labor and reshaping how industries operate and scale.
A Smart Buy with Reasonable Valuation
With its leadership in CRM, reasonable valuation, and potential breakthrough in agentic AI, Salesforce looks like a smart buy. Its recent pivot towards AI technology could be the catalyst for its next stage of growth.
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