Did Jim Cramer Get These 23 Stocks Right?

7. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 164

A caller asked Jim Cramer about his thoughts on Salesforce, Inc. (NYSE:CRM) back then, to which he replied with:

“I think Salesforce will trade higher when they report at the end of May because it’s not as expensive as some others in its cohort.”

Salesforce, Inc. (NYSE:CRM) has decreased by 8.93% since Cramer’s remarks.

On February 27^th, Jim Cramer shared his continued optimism on the company and gave his input on its financials:

“Look, Marc is, what he’s saying basically is look, the future is going to be, this [inaudible] of Agentforce. I mean stop thinking so small. Stop thinking about what would happen without Agentforce. I mean he did talk about Stuart Miller from Lennar. And what Lennar was doing with it and how they’re moving people who are kind of doing skunk work into more important things. And that’s, that’s what happening. But it’s not easily understood. I think that the use cases are going to come again and again. You know what was really the most interesting, and I don’t mean to rain on the Agentforce parade, but, they’re working very closely on a healthcare vertical. Uh that goes against Veeva. Which does healthcare tests. They do contract research, they make . .and they got Pfizer. Which is the single biggest account out there. They got Pfizer. And lost in the shuffle of Agentforce, I mention it only because Agentforce is such a big deal and Mark, I had to bring up Pfizer.

On a large gap between CRM’s GAAP and non-GAAP earnings “I’d focus on gross margins. But gross margins used to be in the twenties, now they’re in the thirties. Why is that? Because of your friends at the hedge funds who pressured him. Right and they pressured him to higher gross margins. He did something, you know, memo to people who hate the activists. The activists came and he said you know you guys are brilliant. And the he proceeded to overwhelm them with phone calls, [they] finally said okay whatever you want, Marc. We’re tired. We’re tired of you doing exactly what we said you to do.

It was down sixteen at one point, then it was at three o eight one point. I said, there are heat seeking missiles that will drive it back down. It’ll go down another five, eight. But I think that Mark’s thinking about something bigger. There’s ten more, there’s two more Mathew McConaughey commercials coming for those who like those. And they have brought a lot of business according to Marc.”