Marc Benioff's $25 Billion Bet Against the "SaaSpocalypse" Earlier This Year Is Now Paying Off for Salesforce Investors, and It's Not Too Late to Join

CRM shares have climbed 38% since March, following CEO Marc Benioff's $25 billion accelerated share buyback executed during the AI-driven software sector sell-off earlier this year. The aggressive capital deployment came as investors fled SaaS stocks amid fears that artificial intelligence would disrupt traditional software business models.

The bet is delivering results. CRM reported second-quarter earnings showing AI-related revenue surged 210% year-over-year to nearly $4 billion. The company also announced a partnership with Anthropic, rolling out a new product called Claudeforce that integrates the AI firm's technology into its platform.

Despite the rally, CRM trades at 16 times earnings, a valuation that suggests room for additional upside if the company continues converting AI skepticism into revenue growth. The buyback timing proved opportunistic: Benioff deployed capital when the market was pricing CRM as an AI victim rather than beneficiary, then delivered proof points that justified a rerating.