Shares of Salesforce.com popped Wednesday after the cloud software maker posted better-than-expected quarterly results. "Fast Money" trader Guy Adami believes investors should hold on to the outperforming stock.
"To me, they're the best operator, absolutely, in the space," he said.
Salesforce took in $1.71 billion in revenue in its fiscal 2016 third quarter, a 24 percent increase from the previous year. Though it posted a net loss, Salesforce's adjusted earnings were 21 cents per share, beating analysts' estimate of 19 cents, according to FactSet.
Shares rose more than 5 percent in extended trading. Though the stock has climbed 30 percent this year, its valuation should not scare investors, Adami contended.
Salesforce continues to show "great growth," added trader Pete Najarian. However, SAP and other competitors could "start to catch up," said trader Steve Grasso.
SAP shares have climbed about 14 percent this year.
Long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AAPL, ABX, BAC, BEE, DAL, DOW, EMR, FIT, JOY, LB, LUK, MRK, MSFT, PBR, PFE, POT, SLV, TJX, UA, UAL, VZ, WYNN, XLF, ZIOP He is long puts EWW, FCX, MRO
Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long IBM, SHLD, AMZN kids own EFA, EFG, EWJ, IJR, SPY
Brian Kelly is long BBRY, GDX calls, GLD, Bitcoin, Hong Kong Dollar, US Dollar; he is short Yuan, British Pound, Candaian Dollar, Euro, GSG, Swiss Franc, Yen, EEM, EWC, EWH, EWU, EWG, SPY
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.