Jim Cramer - Mad Money SalesForce.com Inc. CRM-N BUY Sep 18, 2024

They report end of the month; he expects a strong quarter based on AI. Acquisitions they made are becoming accretive.

Is up ahead of earnings today. It's all about Agentforce--what has been the adoption been for this AI tool? Guidance is 9.2%. Will they hit it?

12-month price target of $400, good runway still. Has really monetized the application side of AI, the golden goose that everyone was aiming for. Should report in next couple of weeks.

Just bought it. Likes the AI play. Sold off on weak guidance. AgentForce's margins are expanding up to 34%. Profitable.

They're in the sweet spot for AI which needs customer data--which CRM has. They have a huge install base. Shares are -16.5% this year, so it looks good.

Their AgentForce is a true Agentic AI, which will revolutionize tech. He targets $379.

Is up 6,737% over 20 years. Has always been on the leading edge of business tech, currently their Agentics platform that uses AI. Their Agentforce program is underestimated for the growth it will bring CRM.

It just reported a strong top and bottom line beat and raised their full-year forecast. They remain tops in enterprise software.

On the fence on this name. Back in the day it was a high-growth software company, but now lower growth (which happens as you get bigger). Recent deal is fine. But activists had identified ways to eke out more profit, company said no more M&A, and now it's back to M&A.

Also, he's waiting for more durability in the software AI story, which is slowly coming together. Wait and see, better ideas elsewhere right now.

Beat, raised, doing a (really accretive) acquisition at a reasonable multiple. Earnings were flat YOY, but revenues were up 7.6%. Reducing headcount by 10%. Guiding to 8-9% revenue growth. 

Dominant player. A stock you have to own, but has to be at the right price. (He's cheap, he wants to get it at a better price ;) Trades at 20x PE for 2027, with 13%. Better places to put capital to work. Try for 5-10% lower.