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- 🚀 Salesforce Shares Rise 9% After Earnings Beat
🚀 Salesforce Shares Rise 9% After Earnings Beat
Gun Woo Lee & Lucian H
December 04, 2024
Good Morning. This is the Investor Lookout with the daily digest.
Here’s what we got today:
🚀 Salesforce Reports Strong Q3 Results With AI Boost
🛜 AT&T Announces $20B Buyback, Double-Digit Profit Growth
💸 Real Estate Series 1 #1: Commercial Real Estate as an Asset 💸
Salesforce Reports Strong Q3 Results With AI Boost
Eight percent revenue growth is good, but Salesforce's AI story is better. Salesforce ($CRM) delivered a robust third quarter, with revenue climbing 8.3% to $9.44 billion, beating analysts' estimates of $9.35 billion. The company's adjusted operating margin hit 33.1%, compared to an average estimate of 32.2%. CEO Marc Benioff's pivot to AI through the newly launched Agentforce has revitalized investors despite mixed results from acquired divisions like Slack and Mulesoft. Agentforce is an AI tool commonly known as an agent, which can complete tasks like customer support or sales development.
The company's AI confidence is evident from its plans to hire 1,000 employees to sell Agentforce
Salesforce shares climbed 9% after its Q3 report
AT&T Announces $20B Buyback, Double-Digit Profit Growth
AT&T is dialing up returns for shareholders. AT&T ($T) announced a $20 billion share buyback program and sustained 3 years of growth with double digits for 2027, a payoff for its investments in fiber-optic and mobile phone networks. The telecommunications giant plans to return to investors over $40 billion through dividends and share buybacks in a span of 3 years while maintaining its $1.11 annual dividend. The forecast skips the company's ownership of DirecTV, a pay-TV service that will be sold in the first half of 2025, and marks a return of AT&T to its core telecom operations.
AT&T aims to reach more than 50 million locations with fiber-optic by 2029
Its shares increased by 41.48% this year and closed with a gain of 4.67% on Tuesday
What Could This Mean For the Average Investor? 🔎
Salesforce is positioning itself as a serious AI player and can have first-mover advantage in enterprise AI
AT&T's projected double-digit growth for 2027 suggests strong fundamentals and might be an option for value and long-term investors
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💸 Real Estate Series 1: Commercial Real Estate as an Asset 💸
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What Is Commercial Real Estate?
Commercial real estate refers to properties intended for commerce and business activities. These properties are typically leased to tenants who use them for offices, stores, factories, or other business operations. The leases tend to be longer-term, often spanning several years, which can result in more stable and predictable income streams for property owners.
Potential Advantages
Higher Returns: Commercial properties offer higher potential returns compared to residential properties. Annual yields range from 6% to 12%, while residential properties yield between 1% and 4%.
Long-Term Tenants: Business tenants usually sign longer lease agreements, providing a steadier cash flow.
Diversification: Including commercial real estate in an investment portfolio can diversify risk across different asset types.
Ways to Invest
Direct Ownership: Purchasing a commercial property outright allows for direct control over the investment but requires significant capital and management responsibilities.
Real Estate Investment Trusts (REITs): REITs own and manage income-producing real estate. Investing in REITs provides exposure to commercial properties without the need to manage them directly.
Crowdfunding Platforms: These platforms enable individuals to invest smaller amounts of capital alongside others in commercial real estate projects.
Factors to Consider
Investing in commercial real estate involves a good deal of research and planning. Factors to consider include understanding local economic conditions, vacancy rates, and demand for commercial space. This type of investment requires more funds than residential real estate and properties usually need professional management.
💡 Next Up: Real Estate Series 1 #2 - Types of Commercial Properties
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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