We recently published 10 Stocks Jim Cramer Discussed As He Dismissed A Recession. Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer recently discussed.
Salesforce, Inc. (NYSE:CRM)’s shares have lost more than 23% year-to-date as the firm struggles in the software stock winter in today’s AI-driven market. Investors are worried that since AI enables businesses to easily program software, their reliance on SaaS firms like Salesforce, Inc. (NYSE:CRM) is lessening. The shares fell by 4.9% after the firm’s latest earnings report left investors unsatisfied with revenue forecasts. Cramer recalled the drop:
“And my question would be like, are we, if you go back over with what happened with the decline of Salesforce the other day, you know a lot of that is the recognition that we’re gonna have a lot of non real workers. We’re going to have these bogus workers. And they’re taking real workers’ jobs. And that is happening much faster than we realize. Meaning that you have agentics, and the agentics are here, and if you’re going to have agentics, you need more and more power.”
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Cramer discussed Salesforce, Inc. (NYSE:CRM) in detail after the earnings. Here is a portion of his comments:
“To me, there are four main components that I look for when a company reports: Did it beat sales and earnings projections for the quarter? And did it then raise sales and earnings projections for the future quarter? Salesforce handily beat the projections made about this just-reported quarter. So far, so good. But their cash flow came in a little weaker than Wall Street expected. While their guidance for the current quarter was solid, there were individual lines in that guidance that were again softer than what the analysts anticipated.
I figured Wall Street would maybe look past those negatives, given the huge number Salesforce is putting up overall. But that’s not what happened. Instead, we were inundated with stories about how Salesforce gave weak performance… Salesforce’s stock closed at $244… Keep in mind, most companies are not using AI in any way yet that’s visibly making any money, but Salesforce is serving up customers who are thrilled about Agentforce and how well it’s worked for them. I think we’ll hear a bunch of them when we go out to Dreamforce… next month. I bet it’ll be impactful. Those points did not matter one bit, though, to the sellers…”
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.
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