Do Investors Have To Choose Between Microsoft And Salesforce?

Will Microsoft Corp (NASDAQ: MSFT) or Salesforce.com Inc (NYSE: CRM) be the better investment moving forward?

That is the question Wolfe Research analyst Alex Zukin answered Thursday on CNBC's "TechCheck."

Microsoft is leading the pack in the enterprise cloud software space, Zukin told CNBC. "Microsoft has become part of the fabric of companies' products, experiences, services."

Salesforce reported quarterly adjusted earnings of $1.48 per share, which beat the estimate of 92 cents per share. The company reported quarterly revenue of $6.34 billion, which beat the estimate of $6.24 billion.

"I don't know that I've ever witnessed a time where the demand environment for Salesforce - for the relevance of that category -  has been greater than it is today," Zukin told CNBC.

The Wolfe Research analyst maintained Salesforce with an Outperform rating and raised the price target from $290 to $300 following earnings.

Related Link: Analyst Ratings For Salesforce.com

It's hard to pick between Microsoft and Salesforce, he said: "I think they are both fantastic companies and honestly great secular growth opportunities."

Microsoft is taking a different approach as the company is trying to make the products of the future, not just the experiences, Zukin noted.

"I don't think you have to choose between [Microsoft and Salesforce]," he said, "I actually think they will both be great stocks."

MSFT, CRM Price Action: Microsoft was down 0.44% at $300.68, while Salesforce was up 4.66% at $273.01 at time of publication.

Photos: courtesy of Microsoft And Salesforce.