CRM
Salesforce, Inc.
stock NYSE

Saying CRM has no moat it’s insane

Bought HUBS and CRM. Waiting and watching CSU.

Google did code up a social media ecosystem, google+. That thing is now mentioned in the past tense. Microsoft did code up a twitch competitor, mixer. That thing is now mentioned in the past tense. Why aren’t Airbnb or uber getting demolished? Companies can code up their stuff with AI as well. They don’t own no cars or property. For what you describe to be true, tens of thousands of non engineers jobs need to evaporate. My guess is that with the entire white collar workforce crippled, there is no need for google to “code up” a CRM cause no one needs it anyway

Ask Adobe or CRM

Well first of all we don’t know the capabilities of Google’s best in house model. We know Gemini 3 Pro.
And I believe with pretty strong confidence that in a short timeframe, Gemini + a dozen engineers + a few CRM veterans overseeing the project can create a fully polished clone it in a matter of months. And charge half the price and give you a free month and integrations will be smoother.
The hyperscalers are about to do to SaaS companies what the iPhone did to cellphone OEMs. Salesforce and Adobe are the next Motorola. Will they survive? Sure. But those 80% gross margins won’t.

I’m aggressively researching CRM, ADBE, FIG, and ZS at the moment. INTU, OKTA, TWLO also interesting. Will likely buy in the next week. Tempted to buy the entire basket as the AI fears are overblown and software remains a growth industry with outstanding margins. The network effects and switching costs are being missed by investors. All of these have alternatives yet continue to grow while remaining market leaders.

CRM

This misses what enterprise software actually is. Salesforce isn’t just code its decades of accumulated domain expertise, thousands of ecosystem integrations, industry-specific workflows, compliance frameworks, and institutional trust that can’t be “vibed up” by an LLM.
Google has had unlimited engineering resources and capital for 20+ years. If building a competitive CRM was simply about technical capability, why don’t they already own this market? The answer is that the hard parts have nothing to do with code complexity.
By this same logic, Salesforce could just prompt an LLM to build a Google-quality search engine or email platform and undercut Gmail. Why haven’t they? Because the moat isn’t the code - it’s the distribution, ecosystem, customer relationships, operational knowledge, and switching costs.
Enterprise buyers aren’t looking for “a CRM” - they’re buying risk mitigation. They’re buying a system that integrates with their entire tech stack, handles their specific industry requirements, has proven compliance and security, won’t disappear in 3 years, and comes with a mature partner ecosystem. You can’t prompt that into existence.
The real irony is that AI likely strengthens these moats by making these platforms more deeply embedded in customer workflows, not easier to replace. When Salesforce builds AI features on top of your existing data and processes, that makes you more locked in, not less.
Pure software isn’t “toast” - commoditized software without switching costs is toast. It always has been.​​​​​​​​​​​​​​​​

Yes but here’s the issue. Google can build a fully functional CRM with Gemini, a handful of engineers, and very small amount of capital.
So what happens when Google launches that with full integration into GCP, Gmail, all of Google’s other apps and charges half the price of Salesforce?
In the past, it would’ve taken Google years of development, thousands of employees, and billions of dollars to produce a CRM on par with Salesforce. And you can’t get a company to switch their CRM if you’re offering a similar product at a similar price.
But if you can make it better than Salesforce and charge half the price, customers are going to switch. So now Salesforce is in a pricing war, that’s where the margin erosion comes in.
Anything that is pure software is toast in the next five years. They’ll stay in business but they will lose a significant amount of their value. There needs to be something real backing the product (logistics, real estate, massive GPU clusters, etc.). Getting something delivered from Amazon in 1 hour is a moat in the AI age. An LLM can’t do that. 50 years from now it still won’t be able to. Even with robots. You need thousands of warehouses, land, delivery networks, vehicles, robots, employees. A CRM system? An LLM can already make a functional CRM with one prompt.

I bought today around $296.  This is rotational movement and nothing else.  Software and creative stocks all have been destroyed since the beginning of the year.  ADBE, CRM, FIG, MSFT, TTD, META all down.  Does this mean they're all failing - nope.  Any stock related to memory storage or chips is soaring like an eagle.  Are they all good - nope.  It's just the large institutions selling one sector and pumping another.  Happens all the time.

Most analysts or targets do not affect the stock price. Or if they do, they’re just following the trend. Literally Goldman will lower the target if CRM continues to go down
As a value investor you should only follow the fundamentals

RDDT, APPL, MSFT, COST, TGT, GOOGL, CRM, TEAM

Omg I was talking about CRM

Team, Doul and CRM

Reducing cost of development will actually increase their margins, not erode them. One the biggest expenses for software companies has always been development costs, if those reduce significantly that goes straight to the bottom line. This is already playing out btw, look at the past two quarters for some of the bigger names like CRM, ADBE, NOW - margins are extremely solid

Don’t understand the market reaction to CRM but I guess maybe I’m destined to hold the bag

I'm going for ADBE, CRM, INTU

[CRM](https://www.onvista.de/aktien/SALESFORCE-INC-Aktie-US79466L3024) - Salesforce 📃@228.7493$(-2,05% 😡)
[ADBE](https://www.onvista.de/aktien/Adobe-Systems-Aktie-US00724F1012) - Adobe 📃@298.41$(-1,87% 😡)
[INTU](https://www.onvista.de/aktien/Intuit-Aktie-US4612021034) - Intuit 📃@545.79$(-1,59% 😡)
[DUOL](https://www.onvista.de/aktien/DUOLINGO-INC-Aktie-US26603R1068) - Duolingo 📃@150.98$(-2,23% 😡)

$CRM $ADBE $INTU $DUOL
Software bekommt mal wieder ordentlich auf die Fresse vom ehemaligen Lieblingssektor der Wall Street zum regelrechten Hasskind.

Bis auf wenige Software Aktien mit starker AI Exposure haben, die meisten massive Multiple Reduktionen hinnehmen müssen. In meinen Augen ist das teils mehr als verdient. Extrem hohe Multiples gepaart mit ebenso extrem hoher stock based compensations. Viele dieser Unternehmen haben es trotz jahrelanger, massiver Aktienrückkaufprogramme sogar geschafft, die Zahl der ausstehenden Aktien weiter zu erhöhen.

CRM and INTU. I like INTU the most as the entire sector has dropped.