Salesforce: On A Path To Become The 'Most Profitable Software Company In The World'

Salesforce (NYSE:CRM) has lived up to its reputation. The stock has often traded at premium valuations relative to tech peers, perhaps due to it being one of the pioneers of the subscription revenue model. The company has justified that respect based on its strong financial performance over the past several quarters, in which the company rapidly delivered margin expansion even in the face of a tough macro environment. CRM has a net cash balance sheet and has delivered on margin targets many years in advance. On the offsetting side, management appears to show greater confidence in its abilities to sustain and grow profit margins as opposed to delivering on accelerating top-line growth. Given the company's strong performance amidst a tough environment, I reiterate my buy rating for the stock as this is a name that I believe will sustain a premium multiple upon maturity.

https://seekingalpha.com/article/4642066-salesforce-on-a-path-to-become-the-most-profitable-software-company-in-the-world