3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders In Q4 2024: 162
Salesforce, Inc. (NYSE:CRM) is one of the largest players in the customer relationship management software industry. It has been a standout firm in the AI era primarily because of its AI platform Agentforce. In his previous comments about Salesforce, Inc. (NYSE:CRM), Cramer has been positive about Agentforce. The firm’s shares fell by 4% in February after its $9.9 billion in revenue and $1.78 in EPS missed analyst estimates of $10 billion and $2.61. Here’s what Cramer said about Salesforce, Inc. (NYSE:CRM):
“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.”
