Was Jim Cramer Right to Defend Salesforce (CRM) After Its Post-Earnings Collapse A Year Ago?
We recently published a list of . In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other stocks that Jim Cramer discusses.
In those older episodes, Jim Cramer addressed the sharp 20% post-earnings drop in Salesforce, Inc. (NYSE:CRM). In the first segment, he broke down the company's disappointing earnings report and explained why the stock's after-hours collapse may have been overdone. In the following episode, he widened the lens to discuss broader weakness in the enterprise software sector but reiterated his long-term belief in Salesforce's quality and resilience. Here are his comments from back then:
'What the heck just happened to the stock of Salesforce? That's the king of customer relations management software. After the close, Salesforce reported a genuine miss. Several key lines were weaker than expected—revenue, operating margin, current remaining performance obligations—although the earnings per share number actually came in better than expected. […]
A customer service team in an office setting using the company's Customer 360 platform to communicate with customers.
Cramer remained a long-term believer and said to buy on weakness — a good call as the stock is up +12.62%.
Salesforce, Inc. (NYSE:CRM) is the world's leading customer relationship management (CRM) platform, offering cloud-based tools for sales, marketing, service, and analytics.
Cramer remains a big believer in Salesforce. Here's his analysis from a recent episode which aired in June:
'How come I'm sticking with this one?…. Look, I can't dispute that the growth of the core business is slowing here, but that's, I think, simply the law of large numbers… I don't care that old Salesforce is seeing slower growth because it's also seeing a significant increase in profitability. People are treating this like it's an ailing revenue growth story, and that's why they bought in Informatica to kind of hide it. But it's increasingly become an earnings growth play, and the earnings growth is excellent, and Informatica doesn't worry me.
Overall, CRM ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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