Key points:
- Salesforce is Barclays top software stock pick for 2022
- Remarkable growth from spotlighted acquisitions bolster the companies 2022 outlook
- Salesforce looks to be set for another stellar year
Software stocks are of the top talking points on Wall Street, and as digitalization continues to transform global business infrastructure; so they should be. If you’re software-savvy, the name Salesforce (NYSE: CRM) might have rung a few bells in the last few years, but by the looks of it, they’ve got plenty more noise to make in 2022 – making the stock a top pick from Barclays analyst Raimo Lenschow.
The growth model of Salesforce is something that tech bears might have difficulty denouncing. Currently, the company provides the structural backbone for the majority of digital sales; using large-scale digital products to increase interaction with businesses and customers to streamline growth potential.
Read Also: Best Stocks To Buy Right Now
More interestingly, Salesforce acquisition’s could be the real growth catalyst for the company in 2022. The huge growth of workplace communication application Slack and the similar expected growth of data-insight tool Tableau are just two prominent branches of Salesforce’s lucrative framework – and the company is expected to continue its tech acquisition strategy, with sizeable capital allocation at the ready for the coming year.
The Barclays analyst pick has come at the same time as Salesforce’s 2021 Holiday Shopping Report – compiling data from over 1B shoppers through the use of its Customer 360 platform – just a further demonstration of the company’s data-driven capacity as digital usage continues to balloon.
Furthermore, the holiday season report illustrated growth in multiple arms of Salesforce software, including Commerce Cloud, Marketing Cloud, and its AI sector Einstein. Competition from Microsoft and others pushing cloud technology could pose some risk to Cloudbase growth, but the company is well-situated to deal with market tightening.
Barclays analyst Raimo Lenschow made particular reference to the “inflecting momentum” in the companies core clouds, along with a “maturing cross-sell motion” including the prevalent acquisitions of Slack, Tableau, and MuleSoft. Salesforce is expected to bolster its growth verticals in 2022 through the continued articulation of data and customer footprints. CRM stock is currently trading with a daily gain of 1.3%, at a price of around $237.5.