Cramer on Salesforce: Why the Cloud Giant’s Haters Are Missing the Point
If you’ve followed the volatile world of tech stocks lately, you know that Salesforce (CRM) has been a lightning rod for criticism. The stock spent much of the year on the wrong side of the market, a painful reality that led to a common refrain among skeptical investors.
Yet, in the face of what he calls the company’s “haters,” market commentator Jim Cramer delivered a powerful defense, declaring his position unequivocally: “Haters will be haters, but I think it’s fine.” His confidence, as it turns out, is rooted in the company’s laser-like focus on two things: disciplined profitability and a massive pivot to artificial intelligence.
The skepticism is understandable. Shares of the customer relationship management (CRM) giant have struggled to find traction, a trend exacerbated by a revenue forecast miss earlier in the year that sent the stock plunging. The narrative of slowing growth for the cloud leader became loud, leading to a year-to-date decline of around 30% at one point, which made it one of the Dow’s worst performers.
However, Salesforce’s most recent earnings report for the third quarter of fiscal 2025 has provided Cramer with all the ammunition he needs. The company didn’t just meet expectations; it sailed right past them. Revenue for the quarter, which ended October 31, 2024, hit $9.44 billion, exceeding average analyst estimates. More importantly, net income surged by 25% year-over-year to $1.5 billion. Following the impressive results, the stock shot up by 10%.
The financial success wasn’t accidental. It reflects a strategic shift that management has been touting for over a year: a focus on generating profits and cash flow alongside growth. Salesforce reported a non-GAAP operating margin of 33.1% for the quarter, demonstrating significant financial discipline. Furthermore, its operating cash flow and free cash flow both saw substantial double-digit gains, rising by 29% and 30% respectively. This newfound commitment to shareholder returns was also evident in the $1.6 billion returned to stockholders through share repurchases and its growing dividend payments.
The other major component of Cramer’s bullish argument is the company’s aggressive jump into the future of work. CEO Marc Benioff has centered the company’s new chapter on its flagship autonomous AI product, called “Agentforce.” The platform, which integrates AI agents, data, and CRM applications, is positioning the company to be a major beneficiary of enterprise AI spending. This product was explicitly named as a core part of its strategy, demonstrating the commitment to embedding AI across its entire suite of products.
While some analysts remain cautious about the growth outlook in a tightening enterprise spending environment, Cramer is clearly willing to look past the short-term noise. For him, the combination of strong execution, robust profitability, and a high-stakes, all-in bet on the next wave of enterprise AI is a compelling reason to stick with the stock. In the battle between the loyalists and the “haters,” Cramer is firmly in the corner of the cloud king, viewing the recent slump as an opportunity to buy a proven leader that is finally showing the financial discipline investors craved.