Jim Cramer Highlights That the Charitable Trust Has Owned Salesforce for “Years and Years”

Salesforce, Inc. (NYSE:CRM) is one of the noteworthy S&P 500 stocks Jim Cramer highlighted. Cramer noted that the Charitable Trust has held the stock for quite a long time, as he stated:

Salesforce was the seventh worst, down almost 20%. GoDaddy, which offers tools to register and construct websites, many people use them, was ninth worst, down roughly 19%. Tyler Tech, which makes software for public sector customers, rounded out the bottom 10 with its stock down nearly 19%… Salesforce, get this, 30 times down to 16 times. GoDaddy, 30 times down to 14 times. Tyler, 54 down to 29. That’s a textbook example of multiple compression. It’s extraordinary. Now, if you don’t understand anything that I just said about PEs and multiple compressions, I spend so much time talking about it here because it is the most important thing about your stocks, knowing the multiple, knowing why compressor expands, How to Make Money in Any Market.

This is what you need to know if you’re going to own stocks of high price-to-earnings multiple companies. At this point, you could argue that there’s some overshooting on the downside. If you believe in this industry, I’d recommend going with ServiceNow or Salesforce. We own the latter for the Charitable Trust. We’ve owned it for years and years. But honestly, you could have made the same argument a month ago, and you would’ve taken huge losses in January. So I don’t blame anyone who wants to avoid the entire enterprise software cohort here. It is an incredibly bad market. Incredible. I mean, you compare that to, say, like to the transports. Fresh high, fresh high, fresh high. These are fresh low, fresh low, fresh low.

Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels

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.

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Disclosure: None. This article is originally published at Insider Monkey.