Dear Reader,

Oracle (ORCL) has skyrocketed recently after signing a $300 billion deal with OpenAI.

Barron’s is calling this Oracle’s “Nvidia Moment…”

While the Wall Street Journal is simply calling Oracle the “New Nvidia.”

But is Oracle really the #1 AI stock you should buy today?

One Wall Street legend has a different view.

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It’s already up over 60% since.

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But he’s sharing this recommendation, 100% free, to help you prepare for what he calls “the inevitable next wave of the AI boom.”

Click here for the name and ticker.

Regards,

Vic Lederman
Publisher, Chaikin Analytics

Salesforce Stumbles, But Investors Eye a Major Comeback

Written by Thomas Hughes. Published 9/5/2025.

Salesforce’s (NYSE: CRM) guidance for Q3 and the full year disappointed, triggering a sizeable pullback that tech investors may view as a buying opportunity. “Underwhelming” might be overstating the case: the company still forecasts sustained double-digit growth, strong margins and robust cash flow to fund its capital returns.

Capital return remains a major draw for long-term tech investors, and the stock’s outlook is attractive. However, conservative guidance and tempered analyst sentiment could keep shares under pressure until year-end.

At current levels, Salesforce’s dividend yields under 0.7%, with shares trading near multi-year lows. Share repurchases, meanwhile, account for more than five times the dollar value of dividends.

In Q2, buybacks cut the share count by over 1.1% for the quarter (1.35% YTD) and are poised to continue—or even accelerate—thanks to strong free cash flow, healthy growth prospects and a fresh $20 billion board authorization. That lift pushes total remaining repurchase capacity to $50 billion, sufficient to sustain Q2’s pace for the next five years.

Salesforce Q2 Strength Overshadowed by Cautious Guidance

Salesforce delivered a robust Q2: revenue rose 9.8% (9% CC), beating MarketBeat’s consensus by about 100 bps. Subscriptions & Support climbed 11% (9% CC), while Data Cloud and AI revenues surged 120%.

Profitability also impressed. Gross and operating margins expanded, lifting net income by 30 bps to 18% of revenue—well ahead of expectations. Adjusted EPS of $2.91 topped forecasts by more than $0.10, and management raised full-year EPS guidance above the Street, anticipating continued strength into Q4 despite flat revenue guidance.

Notably, free cash flow is expected to grow about 12% at the midpoint of the range. On the balance sheet, leverage ratios remain conservative, the company holds net cash versus long-term debt, and equity ticked higher even as treasury shares jumped 25% to over $24 billion.

Analysts Trim Targets; Upside Persists

Following the Q2 update, analysts have trimmed their price targets, but mainly to shrink the dispersion around the consensus—which still implies roughly 35% upside from key support levels. Institutional buying has been steady this year, providing solid support near September trading lows and the bottom of the target range.

While CRM shares dipped post-announcement, they are resting at well-tested support zones. This setup suggests limited downside and a favorable backdrop for a rebound. The primary risk is a prolonged consolidation at these levels—but given Salesforce’s growth trajectory and shareholder returns, a drawn-out slump seems unlikely. Instead, the question is how long shares will linger near the lows before analysts regain confidence and the next rally begins.

The most likely catalyst for an inflection is the Q3 earnings report, due in early December.