Salesforce vs. CrowdStrike: Which Technology Growth Stock Is a Better Buy in 2026?
2026-07-18 12:01
•Robert Izquierdo •The Motley Fool
••••••• •••• Axe Capital view
Salesforce vs CrowdStrike: A South African Investor’s Take for 2026
Between steady CRM growth and high-flying cybersecurity hype, Salesforce offers the safer JSE link via USD/ZAR exposure this year.
CrowdStrike’s high growth is tempting given South Africa’s rising cyber risks, but its sky-high price and ongoing losses make it a tough nut to crack. With a 165.5x forward price-to-earnings ratio, it’s pricing in perfection—something rarely seen in this market. Salesforce, trading at a much more reasonable 12.1x forward P/E with a healthy 18% profit margin, carries less risk. Its AI-led revenue acceleration and solid fundamentals position it well if the global tech cycle steadies. For rand investors, this translates into less vulnerability, especially as USD/ZAR wobbles in a range. Watch South African blue chips like Naspers and Prosus for indirect CRM and cloud exposure, but direct investment in local names feels limited here. Salesforce’s valuation offers a buffer against rand weakness compared to importing pure growth plays like CrowdStrike. The crowd optimism on cybersecurity may cool if Amazon, CrowdStrike’s infrastructure backbone, falters or regulation tightens. this is just my opinion and not financial advice
I would prefer to buy Salesforce exposure indirectly through rand-hedged global counters or USD/ZAR positions, and avoid CrowdStrike for now due to valuation risk and unprofitability.
- Salesforce (CRM)
- USD/ZAR
- CrowdStrike valuation collapses amid profitability concerns
- USD/ZAR spikes hurting dollar-denominated gains
6/10
The article compares Salesforce and CrowdStrike as investment options in 2026. Salesforce, a mature CRM leader with $41.5B revenue and 10% growth, trades at a 12.1x forward P/E with strong profitability (18% net margin). CrowdStrike, a high-growth cybersecurity firm with $4.8B revenue and 22% growth, trades at 165.5x forward P/E but remains unprofitable (-3% net margin). Despite CrowdStrike's superior growth and market necessity, the author recommends Salesforce as the better buy due to its significantly lower valuation and recent positive momentum in AI offerings, suggesting potential stock recovery.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Robert Izquierdo
Categories: Equities, Earnings, Regulation, Legal, Technology, AI, Semiconductors
Tickers: CRM, CRWD, AMZN, MSFT
Sentiment: Positive - Recommended as the better buy despite lower growth rate due to significantly undervalued stock (12.1x forward P/E vs sector 33.8x), strong profitability (18% net margin), conservative leverage (0.3x debt-to-equity), and recent positive momentum with Agentforce AI showing customer traction and Q1 FY2026 revenue acceleration to 13% YoY growth. Recognized as a high-growth cybersecurity leader (22% revenue growth) with strong market position and recurring revenue model, but valuation is considered excessive (165.5x forward P/E, 43.1x P/S ratio). Concerns include ongoing fallout from July 2024 software bug, heavy reliance on Amazon infrastructure, high insider stock sales, and unprofitability (-3% net margin), making it less attractive despite growth potential.
Keywords: CRM software, cybersecurity, cloud-based platforms, AI integration, valuation comparison, growth stocks, software industry
Insights:
- CRM: Positive: Recommended as the better buy despite lower growth rate due to significantly undervalued stock (12.1x forward P/E vs sector 33.8x), strong profitability (18% net margin), conservative leverage (0.3x debt-to-equity), and recent positive momentum with Agentforce AI showing customer traction and Q1 FY2026 revenue acceleration to 13% YoY growth.
- CRWD: Neutral: Recognized as a high-growth cybersecurity leader (22% revenue growth) with strong market position and recurring revenue model, but valuation is considered excessive (165.5x forward P/E, 43.1x P/S ratio). Concerns include ongoing fallout from July 2024 software bug, heavy reliance on Amazon infrastructure, high insider stock sales, and unprofitability (-3% net margin), making it less attractive despite growth potential.
- AMZN: Neutral: Mentioned as critical infrastructure provider for CrowdStrike's Falcon platform, representing a dependency risk for CrowdStrike's operations.