Hi YXI friends,

Salesforce shares, CRM, opened by up 10% after beating its Revenue and EPS expectations in the Q3 FY2025 earnings. On the earnings call, CEO Marc Benioff labelled Agentforce a “game changer” that creates a new market of “digital labor.”

However, after a very bullish run up in price, is it still a good time to ride the AI wave with Salesforce?

As usual, we will evaluate the stock through our usual lens of fundamental analysis, valuation, and price technicals to provide a comprehensive view.

Table of Contents

• 1. Agentforce Needs Live Up To The Expectations

• 2. Growth Has Not Yet Accelerated

• 3. Profit Margins Are Improving

• 4. Valuation Starts To Appear Rich

• 5. Technical analysis

• 6. Rating: Equal Weight

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. Agentforce Needs Live Up To The Expectations

Salesforce finally released Agentforce just 2 days before the end of the Q3, a very specific timing so that the CEO could speak on and on about it in the latest earnings.

Agentforce is a “customizable, autonomous AI agen”t designed to perform tasks using specific enterprise data. It’s meant to create a “digital labour” market that replaces human customer service, support, and sales. The unique selling point is its low-code/ no-code nature, customizability, and integration with enterprise data. And of course, it can work around the clock without shifts.

While Agentforce has only just hit the ground running, Saleforce already labels it a gamechanger. However, we do not yet have enough evidence in the financials to reflect the positive impact Agentforce has on the top and bottom lines.

2. Growth Has Not Yet Accelerated

Subscribe to YX Premium to read the rest.