Salesforce, Inc. (NYSE:CRM) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer discussed the stock’s price movement, as he stated:
Marc has made great strides in creating an agentic AI product that might be the best in the category. He’s got the Slack system, very popular. I know I like it. For the record, I actually like the quarter too, but Salesforce’s growth isn’t supposed to reaccelerate until the second half of the year. In the interim, the company’s buying back massive amounts of stock, 25 billion already, another 25 billion to go. Real sign of conviction, speaks louder than words to me. Last week, after Salesforce reported the very good set of numbers with a not-so-hot forecast for the current quarter, lots of longtime shareholders decided to throw in the towel.
Boy, there was a lot of negativity, but we stuck with it for the Trust. The next morning, after we interviewed Marc the night before about the quarter, the stock was down $4 in pre-market trading. It was hanging at $173. Carl Quintanilla asked me on air what I’d do with it. I paused for a second, reluctant to say it, but finally said I’d buy it. Salesforce at 13 times earnings, too many doubters, too many short sellers. I remember when people loved this one at 26 times earnings. Now, they hate it at 13 times earnings. That’s crazy. The stock had gone out at $177 the night before.
Soon after I called the bottom, the stock opened lower and hit $171. Then it shot up to $181 just after 10… that morning. Oh, but then it fell back to $176, and it closed there. It was hanging by a thread. I figured it was only a matter of time, maybe another day before Salesforce took out that $173 level that I said I’d buy it at, and I’d be… beaten by the enterprise software stick, but it didn’t happen. Instead, we got a real shock; buyers swarmed out of nowhere… If we had sold at $176 for the Charitable Trust, we would’ve been total morons. Sellers threw in the towel simply because they couldn’t take it anymore. Bad reason to do anything. But now we know there is a level where it’s finally become more dangerous to sell than it is to buy, and that could be the real bottom.
A stock market graph. Photo by energepic.com
Salesforce, Inc. (NYSE:CRM) provides CRM-focused tools that help businesses manage customer interactions, use AI agents, analyze data, collaborate, and run marketing, commerce, and field service operations.
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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center