Salesforce (CRM) up 41% YTD?
Bottoms-up stock fundamentals and top-down narratives
Salesforce (CRM) is up 9% in the past 5 days after it reported earnings and up 41% YTD. The stock was on a steep decline in 2022 after peaking in Nov 2021, but it just hit all-time highs.
Stocks are driven by both bottom-up individual stock fundamentals and top-down narratives (sector-specific and macro).
What has been happening with Salesforce and software more generally illustrates this dynamic perfectly. Let’s dive deeper to understand why:
What does Salesforce do? Quick example.
Salesforce’s business model: SaaS-like with some extra layers.
CRM’s decline in 2022 and the Software Recession.
CRM’s inflection point and recent performance explained (earnings, AI narrative, key debates) - up 50% in the past 6 months.
Looking ahead for CRM - a great long?