Transcript for:
Investment Opportunities in Salesforce

so I'm looking at my phone and every morning I wake up and I look for opportunities ways to make money where is the anap potential where is the opportunity to go against the grain and I think Salesforce is a really good opportunity and I'll explain why shares of Salesforce are falling sharply in overtime after reporting earnings moments ago Revenue coming in light you can see Salesforce right now though is down 15% Italy is slashing their price Targets on salesforce's stock here many citing the possibility that the company could be falling behind in the AI race and yet I'm looking at the numbers and something doesn't add up now let's go this together right so Revenue over the past 5 years increased by 162% operating income increased by 1100 per. net income increased by 272 per. free cash flow increased by 238% cash by 226 per. all that happened in the past 5 years it's currently selling for six time sales and about 21 forward price to earn now I know the market hates these dinosaur non AI companies like Salesforce but look beyond the fact that this is currently a company that's selling for half of what its competitors are service now is selling at 40 forp and 14 times sales when in fact Salesforce hold about 90% of the Fortune 500 companies as customers now I've worked with the CRM with their product and it is irreplaceable it is a very sticky product once you get on it it is very hard for a large company to disengage is is virtually impossible so look $35 billion in Revenue that's what you get from this company every single year now if you look under the hood they already have $ 57 billion in remaining performance obligations which means that even if they do didly squat for the next 18 months they're going to be on Pace to get the same revenues again 9.43 billion that is what they have as debt that's massive but if you look at their cash position they have $18 billion in cash so I love the setup where a company has double cash in debt where the gross profit is 76% and the free cash flow margin is 66% I'm looking at the numbers right here in stock MVP and we got $6.25 billion in cash from operations just in q1 and the new dividend plan and potentially a new buyback I mean what's not to like now what's going on here in my opinion is that the market is overreacting and when the market is overreacting for me it screams opportunity to make money it's very very simple now look let's go over this together right now so Salesforce has missed earnings oh my God ooo oh my God they've missed earnings how much well 9.13 billion in revenues and missing earnings by $20 million over 9.13 billion of Revenue are we really going to do this now their balance sheet super strong cash flow is insane Market position absolutely quasi monopolistic this is a great long-term investing opportunity that just got cheaper for no reason other than a market overaction now they haven't even changed their full year Guidance the full year guidance is still at 37.7 let's say 38 for the sake of this debate right nobody seems to care I think it's a good entry point for investors who are patient long-term oriented smart investors now I know 2024 has become this oh my God growth over everything if you don't have 30% 40% 50% growth we don't care and this company only has 11% growth but my guy it's not just about growth what happened to buying amazing businesses amazing companies with great management Mark benov is one of the best in the business as simple as that now sure they have risks risks from Innovation disruptions from AI but who knows and God knows exactly how they're going to play into this just assuming they're done and selling them at half of what service now is selling for service now is double than Salesforce now to me it is very simple look look at this company as if you're buying the business if right now you're waren Buffett and somebody offers you this company at Half Price literally at Half Price what would you do would you say well it's just trading at 11% growth it's not good enough for for me or would you say well this company is generating $38 billion every single year it is insanely profitable it has great management it holds 90% of the market it is insanely sticky the product is very hard to leave leaving CRM living Salesforce is the equivalent of changing a big four auditor for a massive company it is virtually impossible and sure they don't have all the bells and whistles of the AI Revolution and I get it obviously you want to be an AI for sure but having a company like this at this price this is a mega opportunity as simple as that I'm here to find cheap opportunities for you to make money that's the only goal I have with this Channel and even if sometimes I have to bring an unsexy old company like CRM like Salesforce because it is selling for dirt cheap and it is a great investment I'm going to do it simple as that I'm not here to talk only about Nidia tested paler sure this video is not going to get a lot of views I get it but for the few who will watch this video and will use this to make money they won't care if this is a Salesforce or schil force or whatever the name of the company is if you make money at the end of the day you're a happy camper I'm going to repeat my Mantra like I do every single time this isn't about buying all in loading up the boat buying all you can mortgaging your house that's not how it works beyond the fact that you have to have a balance portfolio and you never want to just go in into one stock even with this particular stock you want to all always slowly dollar cost average build your position slowly over the next year two 3 4 years slow and steady does it simple as that if you actually want to get better at this Beyond just the stock tips I invite you to join our Academy patreon.com Nash we would love to have you there 30 days money bag guarantee if you're not happy with the academy for any reason no questions asked we have a weekly call where we talk about everything like this stock right here and way way deeper into that join us try it out if you just want to join the community you're more than welcome discord.gg Nash we have one of the best communities out there for Finance stocks macro everything and also of course don't forget to check out stock MVP stock mvp.com I've built this platform for you it's your platform my guy use it it's there at a fraction of the price of what the big guys are charging and it has everything a DCF model tool an insiders tool you could look at the financials build your own customized MVP cards and check out exactly if this company is or legit and of course if you're here at the end of the video I just want to say thank you so much I really appreciate it thank you for sharing these few minutes with me I'll see you in the next one