CRM - Salesforce Inc.

Mentioned as one of the SaaS stocks providing a good entry point after the software rebound selloff.

Chuck Akre bought Salesforce, described as a software and data business with deep competitive advantages.

Salesforce reported a massive earnings beat ($3.88 vs $3.12 expected), guided higher, and bought back $27B of stock (16% of the company) in just 90 days. Free cash flow is improving significantly at $14.8B vs $10.3B five-year average. Stock analyzer shows middle price of $353-355 with 16.5% annual return based on free cash flow. Community rates it as average buy at $296 intrinsic value.

Host is in the 'SaaS Apocalypse' camp. He believes AI coding capabilities (vibe coding) will improve dramatically, enabling customers to renegotiate or rebuild software tools in-house. He explicitly says he's 'not touching' Salesforce and similar SaaS names.

The speaker notes Salesforce reported decent earnings but nobody wants to invest in it. The stock is down massively. He presents it as an example of a quality software company being ignored, potentially representing opportunity.

Called one of the most obvious blue-chip value buys in the market. Record $11.1B revenue, earnings beat by 24% ($3.88 vs $3.12 expected), $6.6B free cash flow, Agentforce AI product crossed $1B ARR growing 205%, $25B share buyback. Host argues AI is a tailwind not a threat as Salesforce charges based on AI work volume

Steve believes Salesforce had a good quarter and the selloff is overdone. He plans to buy more, arguing the company is not getting vibe-coded away and trades at an inexpensive valuation despite $14.5B in free cash flow and $50B in buybacks.

Akre Capital initiated a new position. Stock is down a lot and hated. Strong retention rate, wide range of products, very sticky business. Competent and charismatic CEO Marc Benioff. Large buyback program in place. Released new 'Salesforce headless' update. AI will improve not kill the business.

Salesforce is implementing the same credit-based pricing transition as Adobe, moving from seat-based to usage-based monetization. The host sees this as a clear tailwind that could reaccelerate revenue growth. He notes the host is not currently an investor but considers it one of three fine options alongside Adobe and Service Now.

Down ~50% since December 2024. Has pivoted to AI agent-based pricing (Agent Force at $2/conversation), which could be more lucrative than the old seat-based model. Massive competitive moat with 20+ years of customer data at major enterprises worldwide. P/S ratio of 4.13 vs. nearly 3x higher in 2022. P/FCF of 13.42 vs. 40-60 in 2020-2021. Host says it's 'screaming buy.'