There are many ways to add artificial intelligence (AI) technology exposure to your portfolio. Here’s an unexpected way to do this, while also positioning your portfolio for growth in 2024. Conduct your due diligence on Salesforce (NYSE:CRM) and, after discovering what makes this company essential to today’s businesses, consider a position in CRM stock.
Just to recap, Salesforce offers cloud-based software for customer relationship management (CRM) and salesforce automation. Furthermore, Salesforce deploys AI functionalities across its products.
Some investors might choose not to buy Salesforce stock because they’re obsessed about traditional valuation metrics. However, that’s a mistake that could come with an opportunity cost, as Salesforce should provide significant value to the customers and shareholders in 2024.
Concerned About CRM Stock? Consider the Amazon Collaborations
Fretting over Salesforce’s price-to-earnings (P/E) ratio and similar metrics definitely didn’t help investors in 2023. As you may recall, CRM stock climbed relentlessly higher irrespective of Salesforce’s P/E ratio.
As long as Salesforce works closely with Amazon (NASDAQ:AMZN), it’s hard to imagine Salesforce stock collapsing regardless of its P/E ratio. After all, Amazon is an unstoppable technology-market giant.
Salesforce already had a long-standing partnership with Amazon prior to November of 2023. Then, Salesforce announced that it would, for the first time, offer select products on the Amazon Web Services (AWS) Marketplace.
Salesforce CEO Marc Benioff succinctly summed up the significance of this arrangement. “We’re bringing together the #No. 1 AI CRM provider and the leading cloud provider to deliver a trusted, open, integrated data and AI platform,” he stated.
Then, in January of 2024, Amazon unveiled the Buy with Prime for Salesforce Commerce Cloud integration. This product integration, Amazon explained, “helps Salesforce merchants seamlessly integrate Buy with Prime into their existing shopping experience.” It’s a win-win for both companies, but most importantly for this discussion, it will enhance Salesforce’s working relationship with the almighty Amazon.
Salesforce’s New AI-Powered Product Line
Moreover, Salesforce just provided another example of how the company continues to innovate in the niche market for AI-powered CRM products. Specifically, Salesforce unveiled AI-enabled tools specially designed for retailers.
Retail customers will have access to Einstein Copilot for Shoppers, a “generative AI assistant that powers personalized conversations with shoppers.” Meanwhile, retail businesses can avail themselves of Salesforce’s novel tools to efficiently build e-commerce sites and pages, analyze commentary on product reviews, get a clear view of available inventory and visualize sales trends.
All of this, of course, will happen through AI-enhanced tech tools, courtesy of Salesforce. Some of these new products for retailers are available right now, while others will be released in the spring or summer of 2024.
Get Prime market exposure With Salesforce Stock
Is Salesforce overvalued or undervalued, based on traditional metrics? If you’re obsessed over this question, then you’re probably missing out on this year’s rally in Salesforce stock.
Instead, consider focusing on Salesforce’s value as a long-standing Amazon partner and an AI product innovator. After weighing Salesforce’s growth prospects, think about adding some CRM stock to your portfolio. That way, you’ll be positioned for potential profits instead of sitting on the sidelines, fretting about Salesforce’s valuation.
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.