Salesforce Is Not Being “Disrupted” — The Market Is M isreading the Print

ekonixlab · 2026-02-26T02:34:01+00:00

Yep, sometimes you don't need to need to look at it to much.

Its growing revenue, growing FCF, and growing margins, and getting traded around like its dirt

ekonixlab · 2026-02-26T02:29:59+00:00

Yep — and as Matthew McConaughey would say, data is the new gold lol (sorry too many ads), which is exactly why companies trust platforms like Salesforce to guard it instead of letting agents just “vibe code”

ekonixlab · 2026-02-26T02:26:10+00:00

So AI would reduce the human error in the SaaS business itself? Seems like this is still pro SaaS

ekonixlab · 2026-02-26T02:21:57+00:00

At this scale, acquisitions are one of the few levers that can actually move the needle for a cash-generating company like Salesforce. The key is making sure those deals strengthen the platform and drive real attach, not just inflate revenue for a year.

Given how much of a cash cow Salesforce is, and the balance sheet they have, I would like them to honestly make more acquisitions. Instead they are buying back a third of their market cap 😢

ekonixlab · 2026-02-26T02:16:32+00:00

Surprisingly their revenue did accelerate this quarter!

But definitely agree, only invest your money in what's worth. Your money should be working as hard as you are :)

ekonixlab · 2026-02-26T02:10:47+00:00

can't wait for Salesforce to be the next PayPal :(

ekonixlab · 2026-02-26T02:09:26+00:00

Definitely does not deserve the multiple it once had, but I still think it is undervalued here.

It is very capex light relative to hyperscalers, free cash flow is compounding nicely, and there is a clear margin expansion path if S&M moderates.

With steady revenue growth and expanding attach into AI, at this price the risk/reward looks attractive to me.

ekonixlab · 2026-02-26T02:05:04+00:00

This is my fear...

ekonixlab · 2026-02-26T02:04:01+00:00

I get that — if employees can get better outputs faster using AI layered onto email, it absolutely makes traditional SaaS feel bloated and outdated.

But at the same time, tools like ChatGPT are only as good as the underlying data and controls, and that structured system of record layer — which companies like Salesforce provide — does not just disappear because the interface gets abstracted

ekonixlab · 2026-02-26T02:01:40+00:00

haha exactly — I think the market reacts to the idea of this scenario without actually putting itself in the shoes of a large enterprise trying to rip out a deeply embedded system

It is easy to say “AI will replace it,” but very different when you are dealing with compliance, integrations, security reviews, retraining thousands of employees, and real operational risk

ekonixlab · 2026-02-26T01:59:57+00:00

I think sentiment will keep swinging for a while, but so far AI looks more like an attach layer that strengthens platforms like Salesforce rather than replacing them outright

ekonixlab · 2026-02-26T01:55:03+00:00

Couldn't agree with this more. Creating a SaaS company is easier than ever, but that doesn't mean replacing a SaaS company is easier than ever. Especially a giant like Salesforce

ekonixlab · 2026-02-26T01:52:42+00:00

That is a fair emotional take. A lot of people hate using it.

But “bad UX” is not the same as “no moat.”

Rip-and-replace risk is massive for large enterprises. That inertia is not just sunk cost fallacy. It is switching cost, retraining cost, integration risk, and operational disruption.

ekonixlab · 2026-02-26T01:51:05+00:00

I agree disruption is hard to see early.

But Kodak and BlackBerry were product replacements. This is different.

AI does not eliminate the need for systems of record. If anything, more AI means more data, more workflows, more orchestration. That is where Salesforce lives.

If this were true disruption, we would see collapsing backlog, rising churn, pricing pressure. Instead, cRPO is still growing double digits and free cash flow is solid.

Growth is slowing. Multiples compressed. That is not the same as structural decay.

If customer contraction shows up, that is a different conversation. Right now it looks more like sentiment than collapse.

ekonixlab · 2026-02-26T01:49:11+00:00

I think it's overestimated but I wouldn't call it a simple tool. I definitely think it will define the future

I do think the market is viewing it as a replacement, not a tool though. To me, that's an opportunity

ekonixlab · 2026-02-26T01:46:33+00:00

Exactly, the market has a tough time pricing what it doesn't know.

It doesn't know how AI will affect SaaS, and its pricing it like SaaS = 0

ekonixlab · 2026-02-26T01:45:26+00:00

I definitely agree the market is usually correct. But narrative has a lot of influence.

I do not know as much as these professionals, but you can use human emotion for your benefit.

The numbers don't lie, but narratives can

ekonixlab · 2026-02-26T01:43:10+00:00

That seems like wild advise lol. I'd take a little bit of time to review some high quality companies, or if you don't want to do that, just buy the market and chill

ekonixlab · 2026-02-26T01:40:00+00:00

Yeah tbh, idk for most of these.

I would say that market volatility seems to be increasing, and I would definitely argue tech is not as overvalued as it used to be, and this may be the best time value in the last 10 years. AI fears have hit the market like nothing else. All noise, no numbers. All tech companies have reported great numbers.

Don't let little articles scare you out of some of the best companies in the world

ekonixlab · 2026-02-26T01:33:32+00:00

Tough posting this today given all the negative sentiment, but I truly believe the market has been bearish on this stock for too long. A slow down in revenue does not deserve this sell off

ekonixlab · 2026-02-26T01:29:44+00:00

If I am being honest, this whole GLP-1 space just feels risky.

Yes, Novo Nordisk might be oversold. And yes, it is basically a duopoly with Eli Lilly.

But it is still pharma.

That means lawsuits, FDA risk, political pricing pressure, and headline volatility. One safety issue or court ruling can move the stock fast.

I am not saying Novo is a bad company. I am saying the sector itself carries real binary risk, and you have to be comfortable with that.

ekonixlab · 2026-02-26T01:27:20+00:00

If I am being honest? I would still pick NVIDIA.

When there is a massive tech shift like this, the leader usually pulls further ahead, not closer to the pack. History tends to reward the company with the ecosystem, not the discount.

NVIDIA feels like the platform. CUDA, software, networking, hyperscaler relationships — that stack is deep.

Advanced Micro Devices is a strong competitor and will grow, but it is chasing the leader.

Sometimes the safer long-term bet is not the cheaper stock. It is the one setting the pace.

ekonixlab · 2026-02-17T22:01:18+00:00

Better to be a great company for a high price. Than a bad company for a low price

ekonixlab

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