Salesforce, an iconic brand in the cloud CRM space, has become a symbol of rapid growth and innovation since going public in 2004. Investing in the company has delivered phenomenal profits for investors, with stock values rising tens of thousands of percent. However, in recent years its growth rate has slowed, raising questions about the cloud giant's future.

Salesforce, a major provider of cloud-based CRM (Customer Relationship Management) software, went public in 2004 at a split-adjusted price of just $2.75 per share. A $10,000 investment in its initial public offering (IPO) would be worth approximately $930,000 today. Salesforce's rapid growth and its strategic acquisitions in sales, marketing, e-commerce, and analytics initially intrigued investors and set expectations high.

Over the past three years, however, Salesforce has struggled. While the Nasdaq index is up 23%, Salesforce' s$CRM+5.4%stock price is up only about 6%. This slowdown has been attributed to a variety of factors, including macroeconomic pressures, increased competition, and pressure from activist investors to change the company's strategy. Still, Salesforce remains a major player in the cloud space with a market capitalization of approximately $250 billion.

As Salesforce struggles with slower growth, three other cloud companies are emerging as potential industry leaders. Let's take a closer look at these contenders and their current market position, which analysts believe 👇

ServiceNow $NOW+3.2%

ServiceNow

NOW

$919.25 $28.86 +3.24%

Capital Structure

Market Cap

183.4B

Enterpr. Val.

183.6B

Valuation

P/E

162.2

P/S

18.4

Open $887.76

Day range $882.30 - $899.71

52 week range $527.24 - $899.71

Company Overview: ServiceNow is a leading provider of cloud-based digital workflows. Its platform specializes in organizing, optimizing, and automating unmanaged tasks, which is increasingly important as businesses look to streamline operations and reduce costs.

News: ServiceNow launched its Now Assist AI platform, which uses generative artificial intelligence (AI) to further accelerate workflow automation processes. This innovative approach makes ServiceNow a resilient player in economic crises, when companies often invest in efficient solutions.

Growth Prospects: The company has achieved a CAGR (compound annual growth rate) of 26% over the past three years, with analysts forecasting a CAGR of 21% for the next three years. With a current market capitalization of $157 billion, ServiceNow is expected to grow rapidly and could reach a value of $228 billion in three years.

Adobe $ADBE+3.6%

Adobe

ADBE

$526.44 $18.31 +3.60%

Capital Structure

Market Cap

225.3B

Enterpr. Val.

218.1B

Valuation

P/E

43.1

P/S

10.7

Open $517.01

Day range $506.49 - $517.58

52 week range $433.97 - $638.25

Company Overview: Adobe is known for its suite of digital media, including industry standards such as Photoshop, Illustrator and Premiere Pro. The subscription model that Adobe uses creates a high switching cost for customers, which helps keep competition at bay.

News: Adobe is expanding its capabilities in generative AI with tools like Firefly that improve content creation processes. These advances help Adobe stay insulated from broader economic challenges and strengthen its market position.

Growth prospects: Adobe has achieved a CAGR of 15% in the last three years, and expects a CAGR of 11% going forward. With a market capitalization of $242 billion, Adobe is projected to surpass Salesforce, with potential growth to a value of $302 billion in three years.

Alibaba Group $BABA+4.8%

Alibaba

BABA

$88.49 $4.07 +4.82%

Capital Structure

Market Cap

201.9B

Enterpr. Val.

1.4T

Valuation

P/E

21.4

P/S

1.5

Open $84.85

Day range $84.04 - $85.00

52 week range $66.63 - $90.46

Company Overview: Alibaba Group is China's largest e-commerce and cloud infrastructure company. Despite challenges such as regulatory pressure and competition from domestic rivals such as Huawei and Tencent, Alibaba remains a major player in the industry.

News: Alibaba's e-commerce operations have been impacted by tighter antitrust regulations and fierce competition. However, there is optimism that these obstacles will subside and Alibaba can recover and strengthen its market position.

Growth Prospects: Alibaba has recorded a CAGR of 9% in the last three years, with an expected CAGR of 8% for the next three years. With a current market capitalization of $181 billion, if the company overcomes its challenges, its value can grow to approximately $325 billion.

Conclusion

While Salesforce remains the dominant force in cloud computing, its growth has slowed compared to its competitors. Companies like ServiceNow, Adobe and Alibaba show strong potential to become industry leaders. ServiceNow focuses on workflow automation, Adobe has robust digital media tools, and Alibaba has broad e-commerce and cloud infrastructure. As the cloud landscape continues to evolve, these companies may redefine market dynamics and potentially surpass Salesforce in the coming years.

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