Analysis: CRM NVDA

After you receive this Alert, we will be buying 25 shares of Salesforce.com (CRM) at roughly $124.68. Following the trade, CRM will represent 3.67% of the portfolio.

The U.S. equity markets are kicking off this holiday shortened week to the downside as the woes in the technology sector and concerns about a global slowdown/trade continue to weigh down stocks. For that reason, we are looking to protect our cash hoard, yet opportunely look for stocks to buy where we think the downside as been over-extended.

Shares of Salesforce.com, and really all of tech and especially the cloud kings, are being hit today as the market wants to move away from some of the higher-multiple technology stocks. We think this is due in part to the Nvidia (NVDA) guidance and how that stock's massive move to the downside has affected the psychology in tech. However, we don't think Salesforce.com fits into that bracket as its business is front and center in the "Fourth Industrial Revolution," or the digital transformation that is occurring at the enterprise level.

Salesforce.com's extensive suite of products enables its clients to gain a 360-degree view of its customers, and this is a crucial aspect that is a must-have to survive in this business world. Our confidence that the company will reach its impressive fiscal year 2022 revenue target range $21 billion to $23 billion gives us plenty of conviction to buy on this pullback.