Salesforce.com had a record quarter, during which the company posted 35% revenue growth reaching $788 million, or 33 cents per share. The performance was helped by better than expected showing in the company's services support and subscription business, which grew 35% year over year.

Equally impressive was the company's 20% year-over-year growth in operating income, which surged 20%. The company continues to grow various business segments such as professional services at an annual rate of over 30%, all of which contributed to an 18% jump in operating income. But the company said the best is yet to come, projecting guidance of $4 billion in revenue.

That stock should be bought on that basis alone. Aside from 35% revenue growth, management is showing incredible confidence in the company's business. Executives don't go out of their way to apply pressure on themselves if they don't really believe the goal is realistic. What it says is that "we have this thing figured out."

Impressively, despite its high forward P/E of 85, the company continues to prove not only that it can grow into its valuation, but it's willing to raise the bar in the process.

Perhaps the bear concerns about profits just might be overblown -- at least for now. The stock should reach $200 by the second half of 2013.

At the time of publication, the author held no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.

If you liked this article you might like

7 Essential Rules for Investing in Tech Stocks

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

Crazy Weak U.S. Dollar Will Make These 10 Companies Huge Winners

Dow, S&P 500 Set New Records as Fed Moves to Unwind Balance Sheet