As the title says, I think there’s a big opportunity here. Quick thesis:
1. Stocks trading at 15x forward earnings despite raising guidance on their last call
2. Stocks been hammered due to indiscriminate selling in the SaaS space
3. Salesforce is different than a lot of SaaS because it’s vertically integrated into most Fortune 500 companies’ tech stacks (controlling the data, workflow, and insights), switching risk is very high, and customer stickiness is high as a result
4. Agentforce (their AI offering) is seeing explosive growth and given that Salesforce contains everything in their ecosystem they are incredibly well suited to spin up AI agents that can actually be useful for companies and leverage their proprietary data
5. If they succeed in their pivot and convince the market that they can successfully move toward a consumption vs per seat model and win with AI, they have potential for a massive re-rate given all the negativity that’s been baked into the current stock price
6. If anyone is going to navigate a successful pivot, it’s Benioff
Clear catalyst is earnings next week. If they continue to see strong growth particularly in the Agentforce offering, I think this thing could catch a real bid. Not advice, just my opinion - we shall see.