As one of the globe’s largest cloud computing providers, Salesforce is fast becoming a significant player in the enterprise software industry. With clients such as General Electric, Coca-Cola, and Disney, Salesforce is one of the best-known names in CRM and extensive data management.
Salesforce’s business model has proven to be very successful and profitable for investors. The company has never posted a net loss in four years as a public company, and the company’s stock has a 10-year stock price total return of 811.6%.
But Salesforce is not just a profit machine. The vendor has also been recognized to build philanthropic initiatives that give back to local communities, maintain green business practices, and provide disaster relief worldwide.
Many experts suggest Salesforce is one of the best stocks to buy in today’s market and beyond, thanks to its unmatched profitability, customer loyalty, green business practices, and charitable initiatives.
Here are seven reasons why you should consider buying Salesforce stock.
- Leadership in CRM Technology
One reason investing experts recommend Salesforce is that it has been a leader in the CRM industry since 1999.
Salesforce is also credited with creating countless profit-driving apps upon its AppExchange platform, an application marketplace designed to help clients identify new software and tools to streamline their business processes. In addition, the forward-thinking nature of the company and its leadership continue to draw investor interest in a space that continues to grow and scale.
- Stellar Financials
Since its IPO in 2004, Salesforce has delivered stellar financial results for investors. For example, in the investor white papers provided by Salesforce, the IDC reports that the company is slated to create 3.3 million new jobs and bring in over $859 billion in GDP impact by 2022.
Salesforce’s stock continues to offer investors a positive rate of return year over year, due in part to its continued focus on SaaS product development and cutting-edge machine learning technologies.
- Recognized for Customer Loyalty and Satisfaction
Salesforce is recognized as one of the top cloud computing companies to work with by job site Indeed.com, which regularly tracks customer satisfaction across different industries.
During the global COVID-19 pandemic, Salesforce has still been voted the No. 2 of “Top 100 Companies to Work for” by Forbes magazine. Salesforce ranked No. 1 overall in all areas considered top needs for employee satisfaction, including work-life balance, job security, benefits, and senior management.
- A Business Model That Makes Sense
Salesforce has a business model that makes sense for its investors and those who use its products.
The company’s focus has always been on the cloud, and it only offers products that its clients can use in a cloud-based environment. That allows Salesforce to provide frequent updates to its clients at no extra cost. In addition, since Salesforce operates in the cloud, companies no longer have to make a significant upfront investment in on-premises software or hardware.
- Philanthropic Business Practices and Disaster Relief Efforts
Salesforce is committed to maintaining green business practices and supporting disaster relief efforts around the world. Benioff designed the 1-1-1 model of integrated corporate philanthropy. It’s a 1% share, 1% employee hours (volunteering), and 1% product contribution to the local community.
Salesforce has helped charitable organizations such as Unite for Change and Make-a-Wish Foundation raise money through its website. The company is also committed to assisting employees in volunteering in their local communities and contributing to disaster relief efforts.
- Stellar Leadership in Marc Benioff
Investors have shown their appreciation for Salesforce founder and CEO Marc Benioff, which has helped boost its stock price.
While Benioff certainly has a spot among industry titans such as Steve Jobs and Larry Ellison, he is also different. Benioff maintains a relatively low profile, preferring to devote his time and energy to ensuring that Salesforce prioritizes customer satisfaction.
- A Focus on High Performing Employees and Teamwork
Salesforce prides itself on hiring high-performing employees, giving them top-notch training, creating a business environment that encourages teamwork, and promoting from within whenever possible. This focus on the customer and the employee has raised the bar for employer branding and satisfaction, which helps pad the long-term investment options for Salesforce.