Salesforce.com just may be the “last momentum stock standing,” Cramer said on Friday’s Mad Money.
The business software company presented a conundrum for Cramer a couple months ago when it was simultaneously upgraded and downgraded by two different analysts. Cramer said back then that the stock was a sell even though the company itself had a great thing going. He predicted it would beat earnings – and it did, big time.
So on Friday’s show, Cramer revisited CRM by speaking with CEO Marc Benioff, who reinforced his perception that this is one of the most well-run companies around.
Benioff spoke of his company’s new web-based business model that works on a pay-as-you-go subscription basis for customers – a far cry from the days of ordering business CD-ROMs through the mail and hoping they worked out.
Benioff said the company is sitting on over $1 billion in deferred revenue, which Cramer called “money in the bank” for CRM.
While CRM is too expensive a stock for Cramer – it trades at 170 times earnings – he did bless it for investors who want “momentum, growth and quality.”
Watch the video for Cramer’s extended interview with Benioff.
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