After years of strong performance Salesforce.com CEO Marc Benioff has earned the right to be taken at face value, Jim Cramer says.
Shares of Salesforce fell more than 4 percent on Thursday after it reported what Wall Street viewed as disappointing guidance for its third quarter.
"When a person with an exemplary record of beating the highest of expectations slips up and tells it like it is, blaming his team and, more important, himself for the miss, you give him the benefit of the doubt," the "Mad Money" host said.
Because the stock sports a high price-to-earnings multiple and guided down, Cramer understood why investors would want to sell.
On the surface, Cramer found Salesforce's quarter good. It did report better-than-expected revenue and earnings, and it raised its full-year revenue forecast.
However, it left no doubt to Cramer that next quarter miss expectations, with revenues projected to come in at $2.11 to $2.12 billion, versus the $2.13 billion investors expected.