CRM
Salesforce, Inc.
stock NYSE

Rotation not too surprising; you have names like CRM down 15 straight days and MSFT down 20% since 6/1 while BE corrects 20% then goes up like 50% in 12 days and every semi name basically only goes up. Do I like something like CRM? No, but the long AI/short software trade feels crowded again.
At some point have to wonder whether MSFT and AMZN shareholders will start to not tolerate the spending, especially given that over the last 5 years you'd have done better in KO and JNJ than owning either. (MSFT +38%, AMZN +36%, JNJ +40%, KO +46%.)

Investors are stupid. AI doesn’t replace software. AI will use software. And for those who think you can just vibe code a CRM replacement, it’s very obvious they have never deployed a production level implementation before.

People that don't work in tech think businesses are going to rip and replace the core financial systems of their business with AI generated code their developers will have to learn , understand, and enhance, support. Its almost certain doing that would cost more than just paying for a subscription. What will happen is MORE apps will be built that integrate with these existing SaaS players like $CRM, $NOW because that's much easier and faster for AI. There are MANY precedents for this, remember mainframes; they are alive and well, the risk of turning them off far outweighs any benefit to migrating their codebase. What happened is just more systems interact with them, not replace them.
Lots of people not in tech seem to forget this is all just a job to engineers / executives at the end of the day, and everyone knows the phase "if it's not broken don't fix it" - that's salesfore(who owns slack which is where all agents are getting integrated into) and service now. Very little to gain from ripping out/replacing either of these systems. Much more to gain by building add ons/ new features for them to accelerate existing workflows.

ai has lowered software moat - anyone equipped with claude or chatgpt can create a CRM compettietor overnight. no where as good but you can get a functional prototype up and running.

Went all in on CRM today I deserve to be at wendies forev—
Yes medium diet coke and anything else sir?

Yeah man CRM is in 2022 December values.

Don’t forget the Customer R\*\*e MLM (CRM)

Slowly buying CRM and NOW. It’ll pay off eventually and I’m in no huge rush

I added to positions in MSFT and GOOG, holding steady on CRM, and considering buying NOW. I’m fighting the temptation each day to add to
DRAM - hoping I can get it cheaper the next day - and the damn thing just keeps moving higher.

Are you following the stock market? There are so many stocks getting killed recently. Look at LULU, PYPL, FISV, ADBE, CRM etc...
Good solid stocks are getting hurt because the liquidity is being sucked into AI. MAG7 isnt even doing that great this year.

Big difference: RIM stock declined because it lost market share and earnings. That has not happened for ADBE or CRM; earnings are still growing nicely.

Agentic AI right now can’t match low end CRM let alone SF. Maybe in a few years but it is not 2026

Clearly nobody hear is aware of the the impact on CRM business due to the Veeva break up. There will be blood bath

I'm going to buy some CRM honestly

Solid picks, but why not CRM?

The reason is full speculation that their business wont exist in the future do to AI. So that is why the multiples look like a declining business.
That being said- the huge miss is the assumption that this decline happens over night. Salesforce averages 3-5 year contracts on its larger deals. Adoption of AI is very mixed based on industry- so even in the worst case it takes a long time for Salesforce to fall apart.
What is also clear is that a lot of ‘new jobs’ and software will be needed with the shift to AI- and salesforce has both the data and business process flows information to capitalize on that.
I have not seen many of your average analysts realizing this.
End or day- if you believe AI is hyped. This is a great way and time to bet on that by purchasing more CRM. Big gains typically dont come following the crowd, it is the people that are ahead of the crowd…

> I direct dev teams...

...in the context of developing. A replacement for CRM functionality.

Context makes a "pretty big difference" once you learn to hold multiple thoughts simultaneously. Best of luck with that, mate.

Short CRM and NOW and long DRAM.

Hodling ADBE and CRM. Bought way before the dump started. Not buying, not dumping. Just waiting.

I was a value investor like you. Buying stocks with good earnings and low PE. Company that existed for years as well. Very simple and direct.
Now my approach is different. I am force to switch my identity as a value investor to follow the money. I say this because it does not matter whether we are on point about a company growth or not.
What matters the most is what are the big institutions doing with their money and where do they want to invest in. If majority of them want to pour into semi or power, then we have to follow them. More so if they wish to exit, then we also exit along with them. We all know this but we are too stubborn to do this. We love to be a contrarian, and when we are correct we get that high sense of euphoria i get that.
I keep in mind that we are now living in a time of war and horror. Not peace. So because of this i have to change my way of thinking and sold all my SAAS portfolios ($NOW, $CRM and $INTU).
Until the money flows back there, only then i will buy back in.