We recently published 12 Stocks Jim Cramer Discussed As Part Of His Big Tech Deep Dive. Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer recently discussed.
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Salesforce, Inc. (NYSE:CRM)’s shares dipped by 4.9% after the firm’s midpoint third-quarter revenue guidance of $10.265 billion missed analyst estimates of $10.29. Growth is the holy grail of software stocks, and investors often heavily punish them. Cramer had a lot to say about Salesforce, Inc. (NYSE:CRM) after the earnings:
“[On whether he was happy with the full year sales guide] Okay, no. Because I like double digit, I like to see blowout. Marc was saying, last quarter that he could do nine, he ended up doing 11. Last quarter, the quarter was announced was actually great. Okay so let’s put that, there were no disappointments, not in any of the other silos besides, what we’re talking about with agentics. What people are scared about here is that Amazon could come in, there’s actually a story that Amazon may come in agentics AI, which is just something that’s moving Amazon, I’m using that as kind of a metaphor, but, Marc’s company’s under attack here on Wall Street. People feel that what’s happening is that he has this business where he charges per seat for customers, and he’s demonstrated that he was able to lose four thousand people which therefore if you were just imagining that was a customer then that’s four thousand people that you don’t have to pay for.
“So it’s almost like it’s like a cannibalization. I’m also hearing that you don’t understand that AI, and software, are, but AI is killing Marc and that what’s happening is that others are doing what he’s doing. I came out and said, I was doing shadow boxing against the numbers, because I’m doing it, I’m doing the interview while the stock is falling, and I’m saying, well listen but Marc, was it the, was it the cash flow? Hold it Marc, was it the margins? Wait, Marc, was it the continuing remaining performance, and I ended up, I was the one on paper hanger last night because I’m like, holy cow, this thing, I’ve seen this thing come back and I think that Marc is so proud, he’s got the Williams-Sonoma, that’s a very big account, that’s Laura Alber, she’s incredibly smart, he’s got a bunch of other accounts that are doing great things. Steve Huffman at Reddit, he’s so good. But boy, the people weren’t buying it. People feel that this is a company that is under siege. I cannot just write off Marc Benioff like that. I can’t!
“By the way, just so you know the confusion of my interview. Marc was looking about how he made projections and he beats projections. I was looking about how Wall Street had projections and he didn’t beat those. And that I thought that that was going to control the stock. That did, but I, candidly, I mean I was using a, I was using a remaining performance obligation number that was not as right as I should have. I said not as right because there’s so much subjectivity. But what you’re seeing is the street saying Marc did not beat our numbers, and software is being eaten by AI and it doesn’t matter that the agentics program has is, is going to be great. His company is paid by the seat, there are fewer people who work at these companies. But then you come back, the consumption, this is the consumption model which is different from a seat model, it’s a big mess. It comes back to people saying, we don’t believe, that a company, like a software-as-a-service company in this new world can do well, because it’s too easy to make programs.”
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Disclosure: None. This article is originally published at Insider Monkey.
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