Salesforce Struggles to Maintain Market Share Amid Intensifying Competition

When evaluating profitable companies, it's essential to look beyond just their margins. A company can be highly profitable but still struggle to maintain its market share as competition intensifies. This is what Jeff Bezos meant when he said, 'Your margin is my opportunity.'

Salesforce (CRM) is one such example of a company that may have a high operating margin of 20.4%, but it's not necessarily a great investment opportunity.

The company's cloud-based platform provides customer relationship management software to businesses, but its 10.5% average billings growth over the last year was relatively weak.

Furthermore, projected sales growth of 10% for the next 12 months suggests sluggish demand and may indicate that Salesforce is falling behind in terms of innovation and competitiveness.