Salesforce.com, Inc. (CRM) has faced a rocky yet upward climb since the coronavirus pandemic first began impacting American businesses in March 2020. However, over the past year and a half, Salesforce realized continued growth, moving up on the WhaleWisdom Heatmap to a ranking of twenty-three. Salesforce outperformed the S&P 500, rising by approximately 54.1% as of August 6, 2021, compared to the S&P’s gain of about 37.1% since the beginning of 2020.

Salesforce is a cloud services company that specializes in customer relationship management in addition to a suite of enterprise applications that focus on customer service, marketing automation, analytics, and application development. Salesforce’s services permit its customers to use cloud technology to connect with their customers and business partners. Some impacts of the pandemic were that it pushed employers to offer remote work options, master remote collaboration, and sped up a transition to a digital-first world. Recently, the company completed its acquisition of Slack Technologies, Inc., a software company that designs and develops a communication platform for real-time messaging, file sharing, and archiving services. This acquisition provides Salesforce with a great opportunity to better meet today’s customer needs.

Mixed Results from Hedge Funds and Institutions

Salesforce saw underwhelming first-quarter activity, as institutions sold shares and hedge funds made minimal overall increases to portfolios. Looking at the top hedge funds, the aggregate 13F shares increased to about 174.1 million from 173.5 million, an increase of approximately 0.4%. Of the hedge funds, 37 created new positions, 159 added to an existing stake, 43 closed out their holdings, and 122 reduced their holdings. In contrast to hedge funds, institutions sold shares and decreased their aggregate holdings by about 4.3% to approximately 700.4 million from 732.2 million. However, longer-term 13F metrics show a positive trend of investors moving into the equity.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next two years, with increased growth that could bring earnings to $4.32 per share by January 2023, up from $3.84 in 2022. Revenue is predicted to increase to approximately $26.0 billion by January 2022 and $31.0 billion by January 2023.

(WhaleWisdom)

Favorable Ratings

Salesforce saw some positive actions from analysts as first-quarter financial data was released and supported the company’s standing as a leading software player. J. Parker Lane from Stifel Nicolaus maintained a Buy rating on the stock with a $295 price target, while Kirk Materne from Evercore ISI Research raised the firm’s price target to $300 from $290 but maintained an Outperform rating on shares.

Positive Outlook

Overall, there is a positive outlook for Salesforce that may be appealing to investors. The company has a history of growth and making strategic acquisitions, which is why analysts predict that earnings and revenue will continue to rise over the next two years. As a result, Salesforce is well poised to provide a robust platform for connecting customers and business partners.

Shopify, Inc. (SHOP) saw positive growth over the past fifteen months and significantly outperformed the S&P 500, rising by approximately 283.6% as of July 30, 2021, compared to the S&P’s gain of about 36.8%. Shopify achieved a rank of thirteen on the WhaleWisdom Heatmap as of March 31, 2021, up from its previous rank of twenty-one.

Shopify is a global company specializing in commerce infrastructure, providing an e-commerce platform and tools for online stores and retail point-of-sale (POS) systems. Shopify earns subscription fees through customers using its SHOP platform to set up a store online and market and sell their products. Shopify’s merchant customers may also sell in physical locations by using the Shopify POS application.

While the company briefly saw growth slow in early 2020 due to worldwide pandemic-related shutdowns, the business quickly rebounded. Consumers’ habits shifted heavily towards online shopping during the peak of the coronavirus pandemic. That momentum remained even after government restrictions lessened and physical retail space reopened. Convenience and newly established routines are likely reasons why many consumers have not returned to pre-pandemic shopping habits.

Hedge Funds Remain Bullish

Hedge funds have been bullish on the stock, and institutions are also buying. The aggregate 13F shares held by hedge funds increased to about 26.7 million from 22.8 million in the first quarter, a change of approximately 17.1%. Of the hedge funds, 45 created new positions, 103 added to an existing holding, 30 exited, and 81 reduced their stakes. Overall, institutions were buying and increased their aggregate holdings by about 3.0% to approximately 73.9 million from 71.7 million.

(WhaleWisdom)

Positive Multi-year Figures

Analysts expect to see earnings rise modestly in 2021 and 2022 to an estimated $6.52 per share and $6.59 per share, respectively. Revenue estimates are encouraging, increasing to approximately $4.6 billion predicted for December 2021 and $6.2 billion for December 2022. The 13F metrics between 2015 and 2021 demonstrate that Shopify’s investment potential remains on an upward trend.

(WhaleWisdom)

Strong Financial Results

Shopify realized second-quarter solid results, with subscription solutions revenue up 70% year-over-year to approximately $334.2 million. Consumers are still spending, and Shopify reported that they built on the momentum by making significant updates to their platform infrastructure, growing their portfolio, and expanding strategic partnerships. The company saw an increase in merchants joining its platform. Existing merchants could also extract more significant benefits from Shopify’s e-commerce platform and tools.

Positive Outlook

Overall, there is a positive outlook for ongoing demand for Shopify’s commerce services. Shopify benefited from pandemic lockdowns and consumer shifts to online shopping and continues to see increased demand and more robust digital commerce trends than in pre-pandemic days. Shopify’s impressive 2021 earnings to date and future revenue estimates should be appealing factors for investors.

Apple Inc. (AAPL) experienced soaring growth over the past fifteen months, outperforming the S&P 500 and rising by approximately 100.0% compared to the S&P’s gain of about 35.2%. Despite solid growth, many hedge funds and institutions sold the stock in the first quarter. So, Apple saw a slide in its rating on the WhaleWisdom Heatmap to 40 from 8.

Apple is a multinational technology company that designs, manufactures, develops, and sells personal computers, networking applications, portable music players, and mobile communication and media devices, including wearable technology (wearables) and touchscreen tablets. The tech company also offers various online services such as Mac App, a digital distribution platform for its applications, and iTunes, a media library and store. Despite the coronavirus pandemic that negatively impacted many businesses, Apple has thrived and shown record levels of growth. Pandemic-induced government stay-at-home orders had consumers reaching for their Macs, iPads, and iPhones, many purchasing more devices to meet the needs of remote learning, living, and work.

Hedge Funds Are Selling

Hedge funds appear to be trimming Apple from their portfolios. Looking at the first quarter of 2021, the aggregate 13F shares declined to approximately 1.4 billion from about 1.5 billion, decreasing approximately 6.7%. Of the hedge funds, 34 created new positions, 183 added to existing holdings, 38 exited, and 334 reduced their stakes. Aggregate holdings by institutions experienced a milder decrease of about 4.3% to approximately 9.4 billion from 9.8 billion.

(WhaleWisdom)

Encouraging Estimates Continue through 2022

Analysts anticipate that earnings will rise over the next two years, bringing earnings to approximately $5.32 by September 2022. Revenue estimates are also favorable, with year-over-year predictions that could bring revenue to $355.5 billion by 2021 and $369.0 billion by 2022.

High Expectations

Analysts are bullish on the stock, as Apple has reached new heights in financial performance. J.P. Morgan Chase & Co. analyst Samik Chatterjee recently raised his price target on Apple’s shares to $175 from $170. Chatterjee cited strong outlooks for iPhone and Mac computer sales. From Citigroup, Inc., Jim Suva also shared a positive outlook as he raised quarterly earnings estimates.

(WhaleWisdom)

Favorable Outlook

Analysts share long-term optimism for Apple as the company continues to flourish, with shares hitting record highs in the past year. Apple worked through the challenges of the coronavirus pandemic and experienced growing demand for its products and services. Optimistic multi-year estimates offer patient investors motivation to acquire and hold onto shares.

Amazon.com (AMZN) saw substantial growth this past year, outperforming the S&P 500 and rising by approximately 93.4% compared to the S&P’s gain of about 35% and reaching record highs over the past couple of weeks. Despite hedge funds selling, the stock rose on the WhaleWisdom Heatmap to a ranking of twelve.

Amazon is a multinational technology company with a powerful presence in e-commerce and the cloud computing market. The company also offers digital streaming services and artificial intelligence solutions. Amazon Web Services includes machine learning services and supporting cloud infrastructure to aid its customers in increasing productivity and improving business outcomes. As a result of the coronavirus pandemic, more businesses sought to move away from internal management of technology infrastructure and moved to the cloud. Understandably, Amazon saw a boom in business during the coronavirus pandemic. Stay-at-home government orders led to increased online shopping, greater demand for streaming entertainment, and a push towards remote work.

Hedge Funds Adjust Portfolios

Amazon lost some traction in the first quarter of 2021, as hedge funds and institutions were decreasing shares in their portfolio. The aggregate 13F shares held by hedge funds decreased to about 56.4 million from 56.3 million. Of the hedge funds, 44 created new positions, 298 added to an existing holding, 62 exited, and 271 reduced their stakes. Overall, institutions were selling and decreased their aggregate holdings by about 0.8% to approximately 287.2 million from 290.0 million. The long-term 13F metrics between 2001 and 2021 demonstrate that Amazon’s investment potential maintains on an upward trend. The company saw a rise in ranking on the WhaleWisdom WhaleIndex to a rating of twelve from thirty-six.

(Whale Wisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next two years, increasing from 2021 to 2022 from an estimated $55.13 to $72.60. Revenue estimates were also highly encouraging, with consensus forecasts reaching $489.6 billion by December 2021 and $576.5 billion by December 2022.

(Whale Wisdom)

Favorable Outlook from Analysts

Analysts appear to recognize Amazon’s strength in the e-commerce market, sharing optimistic price targets and opportunities for future growth. Tigress Financial Partners’ analyst, Ivan Feinseth, maintained a Buy rating on the stock and initiated a twelve-month target price of $4,370. Doug Anmuth of JP Morgan Chase & Co. views Amazon as a top pick, giving it a $4,600 target price and an Overweight rating. Anmuth believes that Amazon’s e-commerce penetration will continue to increase. However, despite optimistic stock values, Amazon must also work through leadership changes as its founder, Jeff Bezos, is replaced by Andy Jassy.

Optimism Beyond 2021

Amazon ushers in a new CEO in 2021, though the potential impact of leadership change has not stopped analysts from being optimistic for the future. Customer demand for Amazon’s products and services remains very strong, and the technology company continues to see upward growth. Multi-year earnings estimates should be strong enough to continue to attract long-term investors.

DocuSign Inc. (DOCU) has seen soaring growth over the past year and significantly outperformed the S&P 500. The electronic signature technology company’s stock rose by approximately 289.6% as of July 9, 2021, compared to the S&P 500’s gain of about 33.7% since the start of 2020. Despite this growth, hedge funds were selling, and DocuSign lost traction on the WhaleWisdom Index, landing at 33 after a previous ranking of 14.

Demand for DocuSign’s subscription services has understandably increased during the coronavirus pandemic due to the need to stay connected during remote telework. DocuSign offers companies a method for remote preparation and sharing contracts and other agreements while electronically recording e-Signatures and approval notes. In particular, the company’s flagship e-signature product saw a boom in popularity from remote work during the pandemic. Even with vaccination rollouts and many pandemic restrictions lifted, DocuSign continues to see momentum for its services. Many businesses move to a hybrid workforce with a portion of remote work remaining.

Hedge Funds Are Selling

DocuSign has temporarily lost favor with hedge fund managers and institutions. Looking at activity by the top hedge funds in the first quarter of 2021, the aggregate 13F shares held declined to about 40.0 million from 40.7 million, decreasing approximately 1.9%. Of the hedge funds, 33 created new positions, 82 added to an existing position, 41 exited, and 67 reduced their stakes. Aggregate holdings by institutions experienced a slight decrease of about 0.1% to approximately 139.5 million from 139.6 million.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise in the next two years, bringing earnings to approximately $2.17 by January 2023. Revenue estimates are also favorable, with a year-over-year forecast showing revenue rising from $2.1 billion by 2022 and $2.6 by 2023.

(WhaleWisdom)

Analysts Are Optimistic

Analysts shared optimistic outlooks after the first-quarter results were released. William Blair & Co. anticipates a strong year for DocuSign. Oppenheimer & Co., Inc. shared that DocuSign is “strategic technology for the new digital future of work” and maintained an Overweight rating on the stock while lowering their price target to $260 from $300 due to industry compression. Morgan Stanley recognized the continuing forward momentum for DocuSign, which was not simply a one-time benefit from the coronavirus pandemic. Morgan Stanley maintained an Overweight rating on the stock and gave it a price target of $295.

Favorable Outlook

DocuSign’s future looks promising as the company continues to run with the boost in momentum garnered during the pandemic. Hedge funds may have recently decreased holdings, but optimistic estimates from analysts should be encouraging to investors.