Salesforce (CRM) Being Down Was Shocking, Says Jim Cramer

We recently published Jim Cramer Discussed These 12 Stocks & Wondered Whether He Should Melt Silver.  Salesforce, Inc. (NYSE:CRM) is one of the stocks that Jim Cramer discussed.

Customer relationship management software Salesforce, Inc. (NYSE:CRM)’s shares are among the poorest performers in the market. They are down by 42% over the past year and by 21% year-to-date. Piper Sandler cut the share price target to $280 from $315 and maintained an Overweight rating on the shares in early February. The financial firm commented that Salesforce, Inc. (NYSE:CRM), like other software companies, could suffer from its seat-based business model and AI’s ability to enable coding. The coverage was part of Piper Sandler’s comments about the broader sector that it believes can suffer from layoffs due to AI-related pressures. Cramer has also consistently discussed Salesforce, Inc. (NYSE:CRM) recently. The CNBC TV host has pointed to the difference between the firm’s AI and non-AI businesses. He discussed the bifurcation in this appearance as well:

“Look at that Salesforce, uh jeez, and the agentic product there is great but people just feel, they sowed the seeds of their own destruction with the seat business. Mark would really disagree with that if Mark were here right now. And I think that, at one point, ServiceNow and Salesforce will get a multiple, obviously we’re not there yet.

“I think there are a lot of companies that still don’t know how to handle the changes. And you need a company, like Salesforce. . .the Defense Department contract didn’t mean anything, the 5 billion dollars to Salesforce. So all I can say is, all I can say is, this stock was down as I was interviewing Bill, Bill McDermott the CEO and it was shocking to me, why, because this thing is now at 27 times earnings.”

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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