Salesforce (CRM) is a Great Company, Says Jim Cramer
We recently published Salesforce Inc (NYSE:CRM) is one of the stocks Jim Cramer talked about.
Customer relationship management software provider Salesforce Inc (NYSE:CRM)’s shares are down by 35% over the past year and by 22% year-to-date. Stifel cut the firm’s share price target to $200 from $260 and kept a Neutral rating on the 17th. One major debate in the market when it comes to Salesforce Inc (NYSE:CRM) has been about the firm’s ability to execute well in today’s AI market. Cramer has also chipped in and asserted that Agentforce continues to do well. Mizuho also discussed the firm in February. It maintained an Outperform rating but reduced the share price target to $280 from $340. Unsurprisingly, the firm pointed to the impact of AI on the software sector and remarked that worries about disruption from the technology was weighing down software stocks. Cramer commented on the broader sentiment:
“Now these are really great companies. These are great companies. If you had told me, two years ago, that we would even have any of that kind of chatter, I would say, do you understand that these are companies where a major bank might agree to a four year deal for ServiceNow. Well now the deals are two years, now we talk about Salesforce maybe not being able to do well in the seat business. I think that maybe one of the problems we have here is just that everyday we hear, it’s just not a big part of your overall, but everyday we hear that these companies aren’t getting the ARR in the out years that you think they are so therefore they are worth less. . .”
While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPCross-Asset Positioning Amid AI Earnings Scrutiny and the US Election
1. Markets diverged during the week. Between the October 23 and October 30 closes, BTC fell 4.78%, the Nasdaq 100 declined 1.98%, and gold and silver dropped 2.72% and 8.59%, respectively. The DAX, KOSPI, Nikkei 225 and Hang Seng advanced. We focus on differences in growth prospects, valuation sensitivity and risk exposures rather than applying a single directional view across assets. 2. Market reactions to Alphabet's and Intel's earnings brought returns on AI investment into focus. Attention is shifting from the scale of capital expenditure to revenue realization, margins and free cash flow. Lower interest rates can ease discount-rate pressure, but a sustained valuation recovery still requires support from both operating performance and financing conditions. 3. The November 3 US midterm elections and November 6 employment report are key events in the coming week. We monitor how post-election fiscal and legislative agendas may affect interest rates, the dollar and industry operating conditions. Our execution priorities are to manage leverage and concentration, retain margin and exit-liquidity buffers, and avoid treating a single political outcome as an automatic trading signal. 4. Following Binance's disclosure of a security incident, industry attention to endpoint protection, access segregation and coordinated incident response has increased. Key assets to monitor: BTC, the Nasdaq 100, crude oil and gold, alongside upcoming earnings from AAPL, AMD, PLTR, ARM, ANET and QCOM.
HYATT HOTELS CORP <H.N>: JEFFERIES RAISES TARGET PRICE TO $188 FROM $167
Italgas Raised to Buy From Hold by Berenberg
BANCORP INC <TBBK.O>: KBW CUTS TARGET PRICE TO $56 FROM $65
Crypto prices
More
