Jim Cramer on Salesforce (CRM): ‘Worth Buying More’

Insider Monkey
03-08

We recently published a list of Jim Cramer’s Latest Portfolio: Top 10 Stocks to Watch. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other top stocks to watch from Jim Cramer’s latest portfolio.

Jim Cramer in a latest program on CNBC said that pain is “inevitable” in the stock market as investors go through the volatility infused by the latest tariffs announced by the US government against China, Canada and Mexico. However, Cramer said investors should get used to this volatility and be ready for different situations.

“Commerce Secretary Howard Lutnick said in the last of his myriad interviews of the day that maybe the Canadian and Mexican tariffs could be partially rolled back, perhaps as soon as tomorrow. Yes, it is all that capricious, and you better get used to it if you’re going to own stocks,” Cramer said.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks Cramer has been talking about recently. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Salesforce, Inc. (NYSE:CRM)

Number Of Hedge Fund Investors: 162

Jim Cramer was recently asked about Salesforce, Inc. (NYSE:CRM). Here is what he said:

“This happens now. We own Salesforce. We started buying it when it was at eight bucks. It’s had a big run. I don’t blame you one bit for feeling like, ‘Ouch, that one’s down a lot.’ All I can do is say, and I’ll say it on Thursday, is this: it’s worth buying more and getting a better average. Why? Because I think the company’s going to have a blowout quarter.”

Salesforce’s latest quarterly results were mixed. It reported revenue of $9.99 billion, missing estimates by about $50 million. For Q1, the company forecasts a year-over-year growth between 6% and 7%. For FY 2026, Salesforce expects total revenue between $40.5 billion and $40.9 billion, reflecting a 7%-8% year-over-year growth. This implies a 1 percentage point deceleration in growth compared to FY 2025. CRM bulls are counting on the Agentic AI market but that catalyst could take a while to realize.

Montaka Global Investments stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:

“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.

While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.

Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.

Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.

But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)

Overall, CRM ranks 2nd on our list of top stocks to watch from Jim Cramer’s latest portfolio. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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

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