Looking solely at the stock price of Salesforce.com doesn’t tell the whole story, its CEO said Thursday on “Mad Money.”
A pioneering force cloud computing, CRM plunged from a high of $160 in July to a recent range of $115 to $135.
Marc Benioff, founder, chairman and CEO, touted strong business in the United States and in Europe with such clients as Verizon, Electronic Arts and Cisco.
“They’re using our products as the heart and soul of how they manage their information systems,” he said. “Instead of buying the complex hardware and software from companies like Microsoft, Oracle and SAP, you’re seeing them acquire our technology at record rates to deploy a whole new infrastructure based on the cloud.
“If we were a company only focused on earnings, we would not be growing our market share and revenue, which would be the wrong thing to be doing at this time in our life cycle.”
CRM sells for 71 times next year’s earnings estimates, which host Jim Cramer called “exorbitantly priced” while allowing that the company nevertheless looked strong.
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“Understand these are high-revenue stocks,” he said. “It’s a revenue growth story. It is not necessarily the right story for this environment, but I think it’s a fabulous growth company.”
Watch the video to see the full interview with Salesforce.com CEO Marc Benioff.
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