Shortly after the opening bell, we will be buying 200 shares of salesforce.com (CRM) at a bid/ask of roughly $134.03/$134.70. Following the trade, CRM (500 shares) will represent 2.39% of the portfolio.
We are scaling deeper into our most recent initiation Salesforce. Our bullish thesis in Salesforce, the leader in customer relationship management, relates to their spearheading the digital transformation that is occurring throughout the business world. This has created a significant total addressable market of $120 billion for the industry, and within that number, management is targeting between $21 billion and $23 billion of revenue by FY 2022 representing a strong growth trajectory.
We believe this is achievable on multiple fronts, including the need of businesses to have a 360-degree view of their customers, the adoption of artificial intelligence technology (Einstein) within the Salesforce platform, and the addition of Mulesoft to Salesforce's fold, which helps organizations implement changes by connecting applications, data, and devices. For more information about initiation from last week, please see our Alert here.
Action Alerts PLUS, which Cramer manages as a charitable trust, is long CRM.