Zinger Key Points
- CEO Benioff said in the post the real game changer for Salesforce would be "AgentForce," as he lauded the performance over the years.
- Piper Sandler analyst, though impressed with better-than-feared results, want to see more evidence of growth stabilization.
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Salesforce, Inc. CRM shares jumped over 4% in after-hours trading on Wednesday after the customer relationship management platform provider reported a beat-and-raise quarter. CNBC Mad Money host Jim Cramer and Piper Sandler analyst Brent Bracelin weighed in on the quarterly performance and outlook.
Unstoppable Growth: As Chairman and CEO Marc Benioff flaunted the company’s accomplishment over the years, Cramer seemed to agree with him. Calling the company’s growth “unstoppable,” Benioff noted that revenue skyrocketed from $4.1 billion in fiscal year 2014 to $38 billion in 2025. “The future is bright,” he said, as he noted that margins are due to nearly double from 16.8% in 2020 to 32.8% in 2025.
Replying to Benioff’s post on X, the stock picker said, “Real deal acceleration.”
Benioff said in the post the real game changer for Salesforce would be “AgentForce,” the company’s low-code/no-code platform for building autonomous AI agents which can not only offer advice but can also execute tasks.
“Powered by cutting-edge AI, Agentforce is transforming how we drive efficiency, growth, and unparalleled customer success,” he said, adding “This is just the beginning of a new era in sales and engagement.”
See Also: How To Buy Salesforce (CRM) Stock
Piper Sandler Raises Price Target But Remains Cautious: Following the quarterly results, Piper Sandler analyst Bracelin maintained a Neutral rating but raised the price target for the stock from $250 to $268, suggesting roughly 3.5% upside from current levels. The analyst attributed the upward price target revision to Salesforce’s better-than-feared results, which showed 9% forex-neutral growth, and an 11% cRPO (current remaining performance obligation) rebound. cRPO refers to the total future performance obligations arising from contractual relationships
Margin expanded from 32.1% in the first quarter to 33.7% in the second quarter, the analyst said.
On the flip side, the analyst said the second-half growth of 8% would mean there would be a further moderation in growth, impacted by two years of measured spending with several industry constraints flagged in the largest Americas region.
“Macro uncertainty, the CFO departure planned for fiscal year-end, and the pending multi-year model transition from applications to agents keep us on the sidelines,” Piper Sandler said. “Until we see further signs of demand stabilization after three years of moderating top-line growth, we maintain our Neutral rating,” it added.
In after-hours trading, Salesforce shares rose 4.09% to $269.50 after ending the regular session down 2.01% at $258.90, according to Benzinga Pro data.
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