by winston » Mon Jan 04, 2021 9:19 pm
vested
salesforce.com
In a year that saw cloud-based software-as-a-service (SaaS) stocks skyrocket into the stratosphere, one brand-name company still offers incredible value: salesforce.com (NYSE:CRM).
Salesforce is the leading global provider of cloud-based customer relationship management (CRM) software. CRM software is used by consumer-facing businesses to manage customer information, log service and product issues, manage marketing campaigns, and prospect for new/add-on sales.
Logically, CRM software makes sense for the retail and service industries. But we're seeing over time is that more than half of all CRM software revenue globally is derived from outside retail and service.
This includes healthcare, information technology, finance, and manufacturing, among other sectors and industries. The addressable market for CRM software is huge, and it just keeps growing.
Back in May, research and advisory firm Gartner released a report estimating that salesforce controlled 18.3% of the global CRM market at the end of 2019. That's almost as much share as the No.'s 2, 3, and 4 CRM companies put together.
Salesforce has established itself as the go-to for this rapidly growing segment of the SaaS stock space.
What's more, salesforce is in the process of acquiring Slack Technologies for $27.7 billion in cash and stock. The allure of this deal is that it allows salesforce to use enterprise-focused communications platform Slack as a jumping off point to promote Salesforce Customer 360.
Considering that multiple SaaS stocks are valued at 20 or more times forward revenue, salesforce is a veritable steal at roughly 8 times forward sales. That's what we call a screaming buy!
Source: Motley Fool
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