Genie Out of the Bottle; Salesforce Throws a Margin Gauntlet Down; FVE Steady at $240

The biggest investor news from wide-moat Salesforce’s investor day was the reiteration of full-year guidance of $31 billion at the high end for fiscal 2023; the reiteration of $50 billion in revenue for fiscal 2026—despite a $2 billion headwind from foreign exchange over the last year; and the new long-term guidepost for 25% or higher non-GAAP operating margin for fiscal 2026. Along with several other product announcements, the company also introduced Genie, a new customer data platform to infuse real-time data across clouds. Lastly, Salesforce also provided an updated capital allocation strategy, a current total addressable market, or TAM, analysis, and incremental disclosures around contract length, cloud uptake, cohort analysis, and retention. We continue to view the stock as one of our top picks, maintain our fair value estimate of $240 per share, and see shares as attractive.