CRM is undervalued at 13-14x earnings due to narrative shift (AI deal, seat growth) and ongoing rerating; it is a must-own long-term but overbought short-term, suggesting buying on pullbacks into the low-to-mid 250s.

or for me, uh, what made my week this week and last week was Salesforce. That's where you're going to get excitement, so to speak. Yeah, I wanted to talk about Salesforce and then overall the the software space because you and I have talked many times about how software was, you know, the redheaded stepchild of the market for a long time and wow, software is back.

It's strong. Salesforce CRM being the ticker, uh, definitely being a leader there.

Um, so [clears throat] when you look at uh CRM, you had a company that was trading with a terminal valuation. So think of PayPal, think of these companies that or Zoom that just had a slowdown and then that was that, right?

And it was a matter of just being a profitable company but with no growth completely deceler complete deceleration in numbers. And then CRM proved out that's not the case. and then moreover signed a deal with the most important AI company in Anthropic and created um Claw Force and all of a sudden he said wait that changes the entire narrative.

Not only are they not losing seats, they're gaining seats. They're signing deals with who is supposedly going to unseat them and put them out of business. And now based on his earnings guidance, you can buy CRM for 13 14 times earnings.

How the f does that make any sense? It's shouldn't be trading like a term of a company. It's a must own.

So, we went crazy on that. Uh 230, I think. I don't want to misquote, but I think that's where we started. 230. Uh recently, I bought more at uh 257 258 and uh no about 253 254 and all pullback.

Yeah. 253 254. And I'll continue to buy it on all pullbacks, but it's long in the tooth. I've sold most. The stock is, you know, overbought and probably will pull back a bit, but it just unbelievable numbers, unbelievable move, and Wall Street's in the midst of rerating it.

So when a company goes from no growth, slow growth, deceleration to being valued like a growth company again, but is trading at 13 14 times, they don't last very long. That's the lesson to be learned and that's what happened here.

and uh Salesforce and its comeback and how well software is trading and maybe how software how semis are lagging. you miss the fact that Salesforce is being rerated and is too cheap and you need to own it

I think CRM Salesforce will continue to go higher but I would wait for a pullback into the low 250s mid 250s.

uh Palunteer recently, uh Salesforce software has been unbelievable.