Jim Cramer Says Salesforce is "Really Great" But He Accepts the Market's Judgment

Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer shared his thoughts on. Discussing that Wall Street believes that ServiceNow’s growth cannot be counted on any longer, Cramer said:

It’s saying the same thing, by the way, about Salesforce, another software company that’s doing fabulously with a stock that’s also seeing multiple compression… Personally, if I were running a company, I would hire ServiceNow and Salesforce, too. They’re really great. But I accept the market’s judgment, at least for now, because I can’t fight. It’s too powerful, and it doesn’t matter what Bill does or says. Doesn’t matter what Marc Benioff says at Salesforce.

These stocks are going to trade like they’re no longer growth names, even as their growth remains strong. Can the market be wrong? Of course. It’s wrong all the time. Can you get in front of a freight train that is the shrinking price-to-earnings multiple? Maybe not now. Not yet. Soon, when we see how low the multiple can go and it will bottom, these may be worth buying because we’re dealing with great companies. Right now, that doesn’t seem to matter, but I bet it won’t stay like that forever. Terrific companies have a way of bouncing back, but not until their multiples bottom and start to turn around.

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.