Past performance does not predict future results. Informational only, not investment advice.
Conway Craig (Director at Salesforce, Inc.) reported an open-market sale of 4,500 shares of CRM at an average $260.61, roughly $1,172,746, in a Form 4 filed 2026-09-04.
Author bought Salesforce at close following a ~20% spike after earnings, betting on continued upside momentum from the positive earnings reaction.
Author profited $60k on a $4k YOLO into CRM 220 call options expiring 28th, indicating bullish conviction and successful bet on upside movement.
CRM delivers a counterintuitive 6.44% true FCF yield despite poor user experience, with cash flows growing while shares retire through buybacks. The combination of high switching costs, user stickiness, and consistent cash generation suggests the market undervalues the business.
Salesforce is trading at a historically low 20-22x P/E (vs. 10-year average >100x) with strong fundamentals: 10% revenue growth, 78% gross margins, $15B operating cash flow, and $6.6B quarterly free cash flow. DCF analysis using conservative 10% growth and 18x terminal multiple yields ~$505 intrinsic value vs. current $190 stock price, implying 165% upside.
Long call position betting on Salesforce earnings beat to drive upside; undervalued at current levels with depressed sentiment creating favorable risk-reward for Jan 2028 upside.
Salesforce is down 34% YTD with depressed expectations heading into earnings, creating a high-probability setup for a positive beat to reverse the narrative around software stocks and reignite sector rotation away from semis.
Salesforce's valuation has been pressured by its transition to usage-based licensing for AI use cases, which justifiably command lower revenue multiples than traditional subscription models. The author does not take a directional view on Salesforce recovery.
End of results.