We recently published 10 Stocks Jim Cramer Talked About. Salesforce Inc (NYSE:CRM) is one of the stocks Jim Cramer talked about.
Salesforce Inc (NYSE:CRM) is a software-as-a-service (SaaS) company that provides customer relationship management products. The shares are down by 43% over the past year and by 30% year-to-date. The firm made a key announcement on February 18th when it announced that it would acquire conversational insights and revenue orchestration platform Momentum in order to bolster its Agentforce AI platform and Slackbot. As per Salesforce Inc (NYSE:CRM)’s Chief Product Officer Steve Fisher, the deal will ensure “Agentforce 360 and Slackbot can incorporate the true voice of the customer to drive complex, multi-step workflows.” Cramer has frequently commented on Salesforce Inc (NYSE:CRM) over the past couple of months. While the CNBC TV host believes that Agentforce is doing well, he is uncertain about the other businesses. Stifel discussed similar factors in a February 17th note. It reduced the share price target to $200 from $260 and kept a Neutral rating. The financial firm pointed out that Salesforce Inc (NYSE:CRM)’s customers were not eager to switch to AI alternatives and added that feedback on Agentforce was improving. Mizuho also lowered the share price target on the 17th. It cut the target to $280 from $340 and kept an Outperform rating. The bank outlined that Salesforce Inc (NYSE:CRM), like other enterprise software stocks, was experiencing “horrible” sentiment due to “AI disruption fears.” Even though the shares are down year-to-date, the CNBC TV host is sticking with the company:
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“People aren’t buying it. And you know what they’re all saying? That’s how Benioff talks when he talks about Salesforce. And there’s a piece out today talking about how Agentforce isn’t doing well. I know, it’s just doing average, Mark Benioff if he were here right now would be appalled and say that’s absolutely not true.
“It’s at 15 times and simply don’t believe that it’s nuclear war against those guys. But again, I’m on the wrong side of history right now, by sticking with Salesforce in a small position and sticking with Nikesh in a small position, I’m viewed as being antediluvian, and a dinosaur, perhaps even a Velociraptor, just to really narrow things down.”
While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
