Salesforce exceeds revenue estimates but misses on earnings with new AI feature Agentforce

From Nasdaq: 2024-12-06 14:02:00

Salesforce reported mixed Q3 earnings, exceeding revenue estimates but slightly missing on earnings. Operating cash flow rose 29% to $1.98 billion, with free cash flow up 30% to $1.78 billion. The unveiling of Agentforce, Salesforce’s new AI agents, drove the stock up 11%. Agentforce showcases Salesforce’s commitment to AI integration and innovation.

Agentforce is Salesforce’s cutting-edge AI feature, allowing businesses to create customizable AI agents for tasks like sales coaching and customer service. These agents leverage generative AI and Salesforce’s Large Language Models for natural language processing. Agentforce’s simplicity and scalability make it a powerful tool for businesses to harness data and drive efficiency.

Salesforce’s focus on AI with Agentforce has positioned it for sustained growth. With a Zacks Rank #3, potential upgrades may be on the horizon. The company is expected to grow earnings by 14.8% annually over the next 3-5 years, with a Free Cash Flow yield above market averages. Salesforce’s AI initiatives make it a compelling investment opportunity.

Salesforce’s AI initiatives align it with tech giants like Microsoft and Alphabet, who are also investing heavily in AI agents. The stock has regained momentum and outperformed the market YTD. With the AI revolution driving innovation, Salesforce is a standout opportunity for investors seeking exposure to transformative technologies and market-beating performance.



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