CRM is undervalued (target 458); recent earnings delivered nominal beats and RPO growth, prompting additional buying.

Salesforce will be reporting today.

Salesforce did move down a little bit in the last 24. You can see this uptrend we have on Salesforce right here is really coming after a very very long downtrend.

Salesforce, remember, bought back like 25 or 26 billion dollars of their own stock at roughly uh 196 191 basis somewhere around there.

we could see Salesforce long-term target for this 458. It's It's pretty undervalued, but if there's any disruption that ends up showing up in their earnings, the thing's going to tank.

This is what they bought for. They bought for the closing price on March 11th is where they went shopping. So March 11th of 2026 is right about here. That's somewhere between 189 to 195.

I'd have to really go to the date chart to get March 11th, which is fine. And we could do that really quick. March 11 is right here. This is the day they bought. This is actually a tight day.

Between 190 and 194 is the day that they bought. So that's when you ended up getting Salesforce basically yoloing it on their own stock, which I mean, frankly, if you look at where the stock is now, you're not paying much of a premium over what they paid for their own stock.

Now, we got some exposure to Salesforce down at about 160, which we're really excited about. It actually ended up going lower before it went up, but I mean, that's just what happens with the ston uh market.

We'll start with Salesforce better uses for their free cash flow. Um, but I understand like investor appetite, you know, they look at Apple and other things in history where a big catalyst and sort of there's room for the next one.

Salesforce, uh, Q3 Q3 revenue beats estimates. Q3 forecast beats estimates. Uh, subscriptions and support up 11%. Q2 operating income beats estimates on operating income. Remaining performance obligations missed. Uh, 66.3 billion versus 67.66.

Remaining performance obligations missed. Uh, 66.3 billion versus 67.66. As soon as you say the word miss, I feel like the stock just tanks. That's usually what happens. I I don't I don't have it up right now.

I don't know what's happening to it. I kind of want to like pull it up and see what's going on.

But anyway, um, adjusted operating margin comes in at 34.1 versus 33.6. That's beat. That's good. Salesforce Q2 adjusted EPS comes in at 5.9 versus 2.9. Let's go. That's good. That's a beat.

Salesforce Q2 adjusted EPS comes in at 5.9 versus 2.9. Let's go. That's good. That's a beat. Uh, well, that's a year-over-year, but that's that's still really good.

Uh, well, that's a year-over-year, but that's that's still really good. Uh, Q3 forecast beats. Q2 subscription and support revenue beats at 10.82 billion versus 10.72. professional services misses at 525 versus 534 smaller portion of the business. I wonder if that's the AI portion though.

Uh, Q3 forecast beats. Q2 subscription and support revenue beats at 10.82 billion versus 10.72. professional services misses at 525 versus 534 smaller portion of the business. I wonder if that's the AI portion though.

So I want to see that current remaining portion of RPO remaining performance obligations is up 14% and fiscal year revenue projection is a raise. The midpoint raise here is 46.25 up from about 40.25. So that's about a 5% raise.

Boom, baby. Look at that. We got a 7% jump on Salesforce. Let's freaking go.

Uh I think we actually just bought a little bit got a little bit more exposure to that this morning. Let's freaking go.

The beats, I'd say on Octa and Salesforce are like not huge, but they're not really like bad misses, right? uh like into its forecast really suggested that they needed to spend money on advertising and kind of getting back in front of customers here with Salesforce and Octa. You didn't really have that. Uh so that's good.

Uh CRM and anthropic launch Claw Force. Oh, are you serious? Oh, that's cool. Okay. Well, we'll we'll write that down too in just a moment. But that's really exciting.

So, Salesforce does doesn't work in Canada yet. One day, our homes AI will work in Canada. Okay, let me look at Salesforce here. So, Salesforce uh so we already went through these numbers.

Uh Beni off just announced Cloud Force on X. Okay. uh announces sorry claude Claude Force. What the hell? WHO COMES UP WITH THESE FREAKING NAMES? Claude Force. Okay, Claude Force runs uh Salesforce uh headlessly uh through Claude.

Claude gets direct governed access to data 360, Tableau, Slack, and all your sales force crap without leaving the chat.

All right. So, Salesforce operating margin. Let's write Let's just write down some more of these uh actual beats right here. Come on, baby. Man, I wish I bought more at 160. That always happens.

That always happens. You know, you buy like literally you buy a stock and and then it goes down and then you're like, damn, I should have bought less. You buy a stock and it freaking skyrockets on the next earnings like Palanteer.

You know, we bought a bunch of Palunteer at like, I don't know, 118 and then it skyrockets up to 170 and it's like, come on, man. I wasn't done buying yet.

All right, so focus focus. Okay, let's do the numbers here on uh where are we? Okay. So, let's do the numbers on Salesforce. Okay. Salesforce numbers. I already talked about the numbers, but I didn't write them down.

I should have, but okay. We have Salesforce operating margin at uh 34.1% versus 3.6. I have uh RPO uh grows 14% uh though that misses slightly misses expectations and then I have subscriptions beat subscriptions beat at 1082 billion that's tiny though divided by 10.79 that is uh about 28 basis point beat.

So like super not tiny, right? As far as adjusted EPS, I mean that's comparing to a year ago it's like doubled. Uh I mean I'll write it down. Adjusted EPS nearly doubles from a year ago to 590 from 291.

You know they've also done some workforce restructuring which a lot of people are doing even into it's doing right now.

Salesforce forecast the forecast at midpoint is forecast Q3 is 1146 billion 1146 divided by 11.42 is about a 35 basis point beat. So, it's kind of nominal, but it it is, you know, it's it's it's up, you know, it's still a beat.

The revenue beat, RPO 14%. Okay. So, there's going to be some stuff to look at and take apart over here. But, um, I think what it is is it's not like this is all relatively nominal in terms of how much it's beating compared to Crowd Strike.

Nominal beats compared to, uh, Crowd Strike, but still really good. Uh, and I would say it it helps reiterate the Q3 Q4 floor.

Oh, wait. Salesforce, dude. 13. God, I I mean, I KNOW I BOUGHT MORE TODAY, BUT I WANTED TO BUY MORE. DAMN.

Salesforce is still up 13%.

right? like you know you buy Crowd Strike in Salesforce which we own and then it goes up 11% and 13% after earnings and then it's just like damn I wish I had more you know old news.

So, we'll do Salesforce and and the others later,