Customer relations management software specialist Salesforce (NYSE:CRM) is part of the recent trend of technology-company layoffs. Does this development change my bullish CRM stock forecast? No way! It’s perfectly fine to stay in the trade as Salesforce is still a premier provider of artificial intelligence (AI) enhanced software and services.
Along with the planned workforce downsizing, prospective Salesforce stock traders should also consider the company’s insider share sales. But again, this doesn’t have to deter you from investing in Salesforce for the long term. The Salesforce layoffs don’t show any real, ongoing problems with the company, so just relax and think logically.
You Need Salesforce Stock for AI-Tech Exposure
Salesforce isn’t a “Magnificent Seven” company, but it’s still a top-tier technology firm that’s aggressively advancing AI-enhanced products. For example, Salesforce unveiled AI-enabled tools specially designed for retailers; these tools include Einstein Copilot for Shoppers, a “generative AI assistant that powers personalized conversations with shoppers.”
In another example, United Kingdom based Simplyhealth said (according to Reuters) that it “had become the first company to use Salesforce’s generative AI to respond to customer emails.” Simplyhealth can now provide personalized replies that take a “fraction of the time needed to produce an answer using a template.”
Salesforce CEO Marc Benioff once called his company the number-one “AI CRM provider,” and he could certainly be right. Enhancing its products with AI functionalities was a smart move for Salesforce, and it’s undoubtedly one reason that CRM stock performed so well in 2023.
Investigating the Layoffs and CRM Stock Insider Sales
The bears and skeptics can always find reasons to worry about Salesforce if they look hard enough. For instance, Salesforce President and Chief Engineering Officer Srinivas Tallapragada reportedly sold 10,000 shares of his company recently.
Salesforce President and Chief Operating Officer Brian Millham reportedly sold 393 CRM stock shares, and Salesforce President and Chief Financial Officer Amy Weaver divested 7,584 shares of the company.
It’s difficult to know exactly why these insiders parted with their Salesforce shares. Perhaps they just wanted to engage in some profit taking after the share-price rally in 2023. It’s not something that retail investors need to lose sleep over.
Also, you might have heard that Salesforce plans to lay off around 700 workers. Again, this shouldn’t be a deal breaker for investors. 700 workers only equates to roughly 1% of the company’s workforce.
Besides, The Wall Street Journal reported that Salesforce “still has 1,000 jobs open across the company.” Clearly, Salesforce isn’t in real trouble if the company can bring that many workers on board.
Salesforce Stock Forecast: Just Relax and Hold It for the Long Term
Salesforce has enhanced its products, including Einstein Copilot for Shoppers, with AI functionalities. This was a smart move, and it makes sense for investors to buy Salesforce stock for AI-market portfolio exposure.
There’s really no need to worry about Salesforce’s insider share sales and layoffs. These are just minor blips on the radar with little to no long-term relevance. So, my CRM stock forecast remains 100% bullish. Investors should buy it, hold it and ride 2023’s powerful momentum in 2024.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
