Jim Cramer Says He Will "Stick With Salesforce (CRM) Because They Got an Incredible Track Record"

We recently published a list of Jim Cramer’s Thoughts on These 12 Stocks. In this article, we are going to take a look at where Salesforce (NYSE:CRM) stands against other stocks that Jim Cramer discusses.

Salesforce, Inc. (NYSE:CRM) was discussed extensively during the episode, and here’s what Cramer had to say:

“How come I’m sticking with this one?…. Look, I can’t dispute that the growth of the core business is slowing here, but that’s, I think, simply the law of large numbers… I don’t care that old Salesforce is seeing slower growth because it’s also seeing a significant increase in profitability. People are treating this like it’s an ailing revenue growth story, and that’s why they bought in Informatica to kind of hide it. But it’s increasingly become an earnings growth play, and the earnings growth is excellent, and Informatica doesn’t worry me.

As for the other legs of the controversy, again, the Informatica deal and the Agentforce ramp up, I gotta give you what might be a really unsatisfying answer: This is now a show me story. I hear Benioff’s arguments for why Informatica is good for Salesforce, but I understand why the market’s unconvinced. He’ll have to prove over time that the deal makes sense. I don’t think Marc wants to sit there and buy back a lot of stock…. He’s itching to buy more businesses if they’re additive, if they make the company faster growing, if they augment Agentforce. I see nothing wrong with that, but I don’t mind big buybacks either.

Now, how about this Agentforce? Again, Salesforce will just have to prove that the product’s a winner over time. What do we really want to see? I’ll tell you what we really want to see. We want to see more bold-faced customer wins, but more importantly, we need to see companies that use Agentforce engaging in large-scale, yes, layoffs….

In the end, look, I’m going to stick with Salesforce because they got an incredible track record. Every time there’s been some… uncertainty about the company’s outlook, the right call was to trust Marc Benioff and his team. Plus, at this point, the stock’s gotten surprisingly cheap. The numbers keep rising, yet the stock has struggled. I mean, the darn thing’s over 23 times earnings. That’s the cheapest Salesforce has been in ages…

Right now, I think you’re getting a steal, but here’s the bottom line: Salesforce is hated here because Wall Street doesn’t believe in the Informatica deal or in the core business, and they think it’s slowing, and the idea that Agentforce can somehow grow fast enough to make up for that difference, uh-uh. This is a moment where you need to have some faith in management. I have faith, but you need to decide for yourself if you’re willing to trust Marc Benioff and his team because ultimately that’s all this comes down to, and for many I know, that’s just not enough.”

Salesforce (NYSE:CRM) provides a single platform that covers sales, marketing, customer service, analytics, and e-commerce. The company’s software helps companies handle customer relationships and improve how they run daily operations.

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