Salesforce and Adobe are now seen, according to a tweet, as easy market buys: low valuation, strong cash flow growth, industry leaders, etc.
Cheap or “cheap”, many probably doubt their potential, of course, AI is partly to blame. 
https://x.com/QualityInvest5/status/1980767254644916670
The article below discusses how Salesforce’s stock has plummeted - the stock is now at its cheapest since its IPO, as investors fear AI will erode the company’s growth. Salesforce promises double-digit revenue growth for the coming years, but investors apparently don’t believe it… especially when AI companies like OpenAI are seen as a threat.
Some analysts, however, believe that investors’ fears will pass. Nevertheless, the forecasts still seem credible to analysts, and in their opinion, SaaS companies’ valuations have generally fallen too much.
Salesforce is still seen as a “must-have tool” for many companies, even though competition in the industry is fierce, partly due to AI-related developments.
Salesforce had a strong quarter, with revenue and earnings exceeding expectations. The subscription business, in particular, continued its steady growth, and the company also raised its full-year guidance, which indicates confidence in continued demand.
Agentforce and Data 360 are performing strongly and are now the star drivers of the entire earnings review, bringing clearly the strongest growth and, of course, new customer accounts. At the same time, cash flow remained strong and margins improved.
Management emphasized that the company is steadily progressing towards its long-term growth targets, and its position at the forefront of AI solutions appears to be strengthening.
https://x.com/EconomyApp/status/1996327691218559209
The slight slowdown in Agentforce’s sales growth is a bit concerning; it could, of course, be that it’s just packaged a bit differently now, and that’s why the numbers are trending downwards. However, when considering the consumer sector, OpenAI and Anthropic are growing much faster.
Salesforce has already named its products under the Agentforce brand, and as some may have read, the company may even change its entire corporate name.
According to Marc Benioff, customers no longer talk about the cloud, but want to discuss AI agents. For this reason, the company has shifted its focus to AI and rebranded its services under the Agentforce names.
The tweet below also emphasized that the company strongly defended its AI strategy after the earnings release and, according to the tweeter, presented a credible picture of its progress, especially with the performance of sales and technology leadership.
The Agentic AI product slowly found its market fit, but only properly now in the third quarter, as customers realized that AI does not replace people but works best as a support for existing current processes.
The company states that major customers are significantly increasing their share of this segment. Furthermore, the pace of AI deals is expected to accelerate, and new pricing models are working well. Although AI still forms a small part of total sales, it appears to be expanding customer spending across the entire product family.
https://x.com/TechFundies/status/1996720571103711316
