Whether to buy CRM stock now depends on investor confidence in the “new” Salesforce (CRM) — a big cap software maker focused on improving profit margins rather than sales growth.

Salesforce has refocused on improving operating margins amid cost-cutting spurred by activist investors. They included Elliott Management, Starboard Value, Third Point, ValueAct Capital and Inclusive Capital.

Salesforce stock has gained 55% in 2023. Further, some technical ratings for CRM stock have weakened.

One big question is whether improving margins is enough to drive the stock higher. Some analysts say revenue growth needs to re-accelerate