The Strategist

Why Salesforce is worth investors’ attention


10/26/2018 - 16:30



Salesforce.com, a giant in digital technologies and cloud computing, is among the top ten companies worth buying during a market correction, according to Jim Cramer, a well-known expert and Mad Money host at CNBC.



Medullaoblongata Projekt
Medullaoblongata Projekt
The software developed by Salesforce, "is no longer a luxury, but rather a necessity," he said.

“It is important to understand that in the conditions of modern reality, a company needs to know the desires of its client better than he does. This is the only way to sustain competition in your industry. Thanks to the Salesforce platform, this becomes possible,” Cramer said during a VIP video conference with Action Alerts PLUS members for investors.

Cramer has compiled a list of 10 companies whose securities are worth buying when prices fall. "Their shares will grow in the short term and continue to grow in the future," said Cramer. Salesforce entered the top ten, as the demand for user data will only increase, he said.

“The fourth industrial revolution, the main feature of which is the digitization of information, covers more and more sectors and is manifesting itself around the world, because emerging markets, for example, Indian, do not cease to improve,” said Cramer. 
According to him, it is important to pay attention to other important components of the success of Salesforce.

Recently, American consumer electronics maker Apple and developer of cloud solutions for business, Salesforce, announced a joint project to create new mobile solutions for organizations and enterprises. One of the first stage of the partnership will be launch of the updated Salesforce mobile app for iOS in early 2019.

Cramer said he was spoke to Apple CEO Tim Cook and Co-Managing Salesforce.com Marc Benioff about the details of the partnership. “I believe that the establishment of partnerships will give impetus to the development of both companies,” he notes.

Earlier this year, Salesforce acquired MuleSoft integration platform for $ 6.5 billion. According to Cramer, this deal is "a key factor that will allow company management to achieve its financial goal of $ 21- $ 23 billion in revenue by 2022".

The presenter also noted that acquisition of MuleSoft will help Salesforce customers to access data stored on outdated equipment. “Many were confident that Salesforce made a bad deal, but the results suggest otherwise,” he says.

In August, the Board of Directors of Salesforce nominated Keith Block for the role of second CEO. One of the reasons for this decision was the possibility that the founder of the company Benioff decides to retire and do something else.

“I am well acquainted with Blok and am pleased to see him as the CEO of Salesforce,” Cramer notes. “This can be considered the answer to the frequently asked question of whether Marc Benioff is going to leave.” The expert added: “Benioff told me many times that business is the most suitable place for change and that he is not going anywhere.”

source: thestreet.com




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