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Cramer: Little doubt Salesforce gains more

Thursday, 29 Aug 2013 | 6:12 PM ET
Salesforce CEO: On a path to get to $10 billion in revenue
Thursday, 29 Aug 2013 | 6:15 PM ET
Salesforce.com Chairman & CEO Marc Benioff discussing its big deal with Louis Vuitton, the positives of doing business with Yelp, his company's growth plan and what to expect from its conference "Dreamforce," with

(Click for video linked to a searchable transcript of this Mad Money segment)

There are lots of trends in tech. But Cramer doesn't think any of them can touch 'the cloud'.

"It's a truly disruptive technology that is crushing traditional hardware based tech firms as well as old-fashioned software plays that can't compete in a cloud-computing world," Cramer said.

By 'the cloud' Cramer is referring to the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer.

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If you're looking to leverage the trend, Cramer says. "one stock is all but synonymous with the theme; Salesforce.com."

Had you established a long position in November of 2008, after CEO Marc Benioff appeared on Mad Money, you'd have realized a gains of 678%!

The company's latest results, released Thursday after the bell, seem to confirm the advance.

Salesforce.com raised its fiscal 2014 sales outlook after reporting better-than-expected revenue and earnings on Thursday, which the Street took as a sign that the company will continue its red-hot growth trajectory.

"I have no doubt the stock goes up more after this. It was a very good quarter," said Cramer.

The company raised its full-year revenue guidance to between $4 billion and $4.025 billion, in line with Wall Street expectations of roughly $4 billion.

The forecast sent shares 8 percent higher after the bell to $47.

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Salesforce said second-quarter revenue rose 31 percent to $957 million, as demand among corporate customers for cloud-based sales and marketing software remained strong.

That translated into second-quarter earnings of 9 cents a share on Thursday, topping expectations of 7 cents, according to analysts polled by Thomson Reuters I/B/E/S. Salesforce said it expects earnings per share of between 32 cents and 34 cents for the full year.

For the current quarter, Salesforce said it expects to break $1 billion in quarterly revenue for the first time in its 14-year history.

*Reuters contributed to this report

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