Analyzing The Data-Driven Powerhouse of The AI Revolution

Bryce here. As we mentioned earlier this week, we wanted to let CodyGPT analyze and write about our newer stock picks to see if it thinks they fit into the Revolution investing framework. Below is CodyGPT's article analyzing Salesforce (CRM) which we started buying a few weeks back.

To generate this, I simply asked CodyGPT to tell me whether CRM fit into the Revolution investing portfolio and explain why or why not. Below is the result after just three prompts (not bad). The AI Revolution continues to accelerate (note the graphic above which I made with one prompt using OpenAI's Sora video model)! Also, don't forget about the Live Q&A Chat on Friday (January 24th) at 12:00pm ET in the Discord Channel or you can email your questions to support@tradingwithcody.com.

Salesforce: The Data-Driven Powerhouse for the AI Revolution

By now, most investors know Salesforce (CRM). This isn’t some hidden gem—it’s a juggernaut. The company dominates the customer relationship management (CRM) space, but what makes Salesforce truly revolutionary isn’t just its CRM software or its steady stream of acquisitions. It’s the virtual treasure trove of enterprise data Salesforce has accumulated and how that data is becoming exponentially more valuable in the age of AI.

In a world increasingly driven by automation and machine learning, Salesforce has positioned itself as one of the most indispensable platforms for businesses looking to stay competitive. That’s exactly the kind of long-term secular growth story we love in the Cody Willard Revolution Investing Portfolio.

More Than CRM: A Data-Driven Ecosystem

Salesforce started as a CRM platform, but it’s evolved into a full-fledged ecosystem for managing customer interactions, analytics, and operations. With products like Tableau, Mulesoft, and Slack, Salesforce isn’t just helping businesses track customers; it’s helping them make sense of oceans of data in real time.

Let’s talk about that data for a second. Salesforce has access to an astonishing amount of enterprise-level customer data, spanning virtually every industry and market segment. As businesses run their operations on Salesforce’s platform, they’re creating a feedback loop of insights that Salesforce can leverage for predictive analytics, automation, and, most importantly, AI.

This is where Einstein AI, Salesforce’s proprietary AI platform, comes into play. Einstein isn’t just a buzzword. It’s helping businesses make decisions faster and with greater accuracy by analyzing patterns in the massive datasets stored in Salesforce. Want to know which customer is most likely to buy your next product? Einstein can tell you. Need to optimize a marketing campaign across multiple channels? Salesforce’s AI has you covered.

In 2025, enterprise data is more valuable than ever. Companies that can harness AI to extract insights from their data aren’t just optimizing their operations—they’re creating entirely new revenue streams. Salesforce is the engine behind this shift.

The Value of Sticky Revenue

Another reason Salesforce belongs in the Revolution Investing Portfolio: its business model is incredibly sticky. Once a company integrates Salesforce into its operations, it’s hard to leave. The ecosystem of tools is so comprehensive that switching to another provider would require a massive overhaul.

And Salesforce knows this. That’s why they’ve doubled down on upselling and cross-selling within their ecosystem. A company might start with Salesforce’s basic CRM, but before long, they’re using Slack for collaboration, Tableau for analytics, and Mulesoft for system integration. This cross-pollination of products drives growth and reinforces customer loyalty.

In 2025, subscription-based revenue is gold. It’s predictable, scalable, and provides the financial flexibility Salesforce needs to continue innovating.

Riding the AI Revolution

The AI Revolution isn’t a trend—it’s a tectonic shift in how businesses operate. Salesforce is leaning hard into AI, not just with Einstein but across its entire platform. Recent announcements about integrating generative AI into Salesforce’s ecosystem show how the company is staying at the cutting edge.

Generative AI tools like Salesforce’s new AI assistants can create automated reports, summarize customer interactions, and even recommend next steps for sales teams. These aren’t just conveniences—they’re tools that can drive measurable improvements in productivity and revenue.

The bottom line? As AI becomes table stakes in the enterprise world, Salesforce is building the infrastructure that companies will need to thrive.

Profitability: The Turning Point

For years, Salesforce was criticized for focusing on growth at the expense of profitability. In 2025, that’s changed. The company has committed to expanding margins, and we’ve already seen the results. Operating margins are now consistently above 30%, thanks to cost-cutting measures and greater operational efficiency.

This balancing act between growth and profitability is critical. It shows that Salesforce can mature as a business without sacrificing its revolutionary edge. As a long-term investor, I love to see this kind of discipline.

Risks: No Free Lunch

Of course, there are risks. Salesforce faces tough competition from heavyweights like Microsoft and Oracle. Its acquisitions, while strategically smart, come with the challenge of seamless integration. And let’s not ignore the valuation—it’s still trading at a forward P/E above 30, which means investors are paying up for its growth story.

But here’s the thing: If you’re buying Salesforce, you’re not just buying a CRM company. You’re buying a stake in the future of data-driven business. You’re betting on a platform that’s becoming as essential to the enterprise as electricity was to the industrial revolution.

Why Salesforce Deserves a Spot

So, why does Salesforce belong in the Revolution Investing Portfolio?

1. Data Is the New Gold: Salesforce’s massive repository of enterprise data grows more valuable every day, especially as AI becomes central to business operations.
2. AI Integration: Einstein AI and generative tools aren’t just add-ons—they’re game-changers in how businesses analyze data and make decisions.
3. Recurring Revenue: Salesforce’s subscription-based model ensures predictable cash flow, making it a resilient pick even in economic downturns.
4. Growth Meets Profitability: The company has proven it can scale profitably, which is crucial for long-term compounding.
5. Sticky Ecosystem: Salesforce’s comprehensive product suite creates customer loyalty that’s hard to disrupt.

Final Thoughts

Salesforce isn’t just riding the wave of the AI and cloud computing revolutions—it’s helping to shape them. With its growing treasure trove of data, cutting-edge AI tools, and a business model designed for scalability, Salesforce is exactly the kind of company that could still be compounding wealth a decade from now.

As always, don’t chase the stock at highs. Be patient, be cool, and nibble your way in. Revolution Investing isn’t about getting rich overnight—it’s about identifying the companies fundamentally reshaping the world and holding them for the long haul. Salesforce checks all the boxes.

— CodyGPT

Don't forget about the Live Q&A Chat on Friday (January 24th) at 12:00pm ET in the Discord Channel or you can email your questions to support@tradingwithcody.com.