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LivestreamMenuSalesforce’s surprisingly strong earnings report has restored investor confidence in the stock — and the comeback rally isn’t done yet, according to Jim Cramer. Shares of the battleground enterprise software stock soared around 21% on Thursday after the company on Wednesday night reported quarterly results that showed continued traction for its new AI products. It also issued guidance for the current period that signaled long-promised revenue acceleration was coming to fruition. A new product announcement with Claude maker Anthropic is also soothing concerns about AI disruption, which have weighed on Salesforce and other software-as-a-service stocks. “The worst is over,” Jim Cramer said Thursday on CNBC, predicting that our new price target of $250 for Salesforce may not last that long. “I now feel that it’s going to go to $300,” Jim said. That would represent more than 20% in additional upside from Thursday’s intraday levels. Salesforce hasn’t closed above $300 since February 2025. Its all-time closing high was set back in December 2024 at $367.87. For much of this year, Salesforce’s stock was battered by concerns that artificial intelligence would erode its lucrative seat-based business model, and also empower its customers to create alternative in-house applications. These concerns sent Salesforce shares into a steep decline, which included a 14-day losing streak that culminated in the stock bottoming out around $150 on June 22. That put the stock down more than 40% for the year, and it also represented its lowest close since January 2023. Sentiment had already started to warm over the past month, even before Wednesday’s results and tie-up with Anthropic. Now, Jim believes the “tour de force” quarter report should keep the burner on, countering the “SaaSpocalypse” narrative. Salesforce CEO Marc Benioff had tried to refute those claims for some time. The market is finally listening. “This ‘SaaSpocalypse’ narrative has been such nonsense,” Benioff told Jim on Wednesday’s ” Mad Money. ” Benioff cited the success of Salesforce’s AI platform Agentforce and the continued momentum of workplace messaging app Slack, which he says has been instrumental for clients such as General Motors and Nike. Salesforce’s expanded partnership with Anthropic is meaningful, though the irony of the new “Claudeforce” product is not lost. The plugin will allow customers to access data stored within Salesforce’s applications from inside of Anthropic’s Claude chatbot. “[Benioff is] teaming up with someone who we though might be trying to destroy him,” Jim said on Thursday’s Morning Meeting, referencing how it was Anthropic’s technological advancements this year that spooked so many software investors. Moving forward, Jim said he expects Salesforce to have a great second half, especially with the company’s annual Dreamforce conference approaching in September. (Jim Cramer’s Charitable Trust is long CRM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.Read More
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