Cramer's Morning Take: Salesforce 10/16/25

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Jim Cramer (0:46)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. I continue to come back to the fact that interest rates are not going higher. That's bullish for us, in particular it's bullish for a stock like Salesforce, which has a high multiple, not really high. Gave a great analyst meeting yesterday and refuted what the bears have been saying. Just be very specific. The bears have been saying that as you bring in Salesforce, agent force, you are able to lay off people who work with legacy Salesforce because that's a business that relies on how many people you have working with it.

And both, it was refuted, it beautifully refuted. And therefore, they are going to have double digit growth with agentics doing it. This was my biggest worry, was that you were not going to see any gains from agentics. The opposite. Agent force is going to begin to produce double digit growth for Salesforce in the next 12 to 18 months. That's causing the bears to cover. That was not what they thought. Really important story, Jeff. Really important story. It's a good reason why you stick with value versus where we sold all the lucratively, AMD and Google, not lucratively Oracle. You have to stick with these things that you think are going to be real value, and that's what happened here. We stuck with it, and I think we're going to have to stick with it because it's not as bad as it was.

Jeff Marks (2:09)

Yeah, there's a lot of encouraging information that came out from that analyst event last night. Their fiscal year 30, revenue target 60 billion plus. I think the consensus was around 58 Some upside there, and maybe more importantly, it shows that revenue growth isn't falling off a cliff like many of the bears suggest. Also, that target doesn't include the information, excuse me, the pending acquisition of Informatica, which they're looking to close. They're saying they're seeing bookings reaccelerate with a gradual revenue inflection 12 to 18 months.

And as you just pointed out about Agenetix, people wanted to know, okay, how are they really going to monetize this? And they kind of laid out a framework where when you're in the pre-Agenetix stage, there's a 1.2 uplift to annual recurring revenue. And as you move to adoption of Agenetix, maybe that goes up to 1.5 to 2 times. But then when you're a full Agenetix enterprise with this wall-to-wall use of agents, both internally and externally, they see it as a 3-to-4 times uplift. And that's going to help them back to get to that consistent double-digit growth, as you point out. And currently, Agenetix AI ARR is $440 million. So again, more granularity about how they're monetizing GenAI and AgentForce. And I think that was a real piece of encouragement for what we're seeing from the market.

Jim Cramer (3:39)

There was a moment in the analyst bidding when one of the executives said to Mark, Look, we didn't have this right. We just didn't. Kind of like how Starbucks didn't have their turn right initially with Brian Nicoll. They said, Listen, we didn't have that right. We didn't know what it would mean. And we didn't tell the story well enough. But now we are. And now that they are, it's exactly the metrics that you described. That's why it might be a longer lasting move. Most of the Salesforce moves up since the stock peaked have been given back during the day. I'm warning people that that probably will not happen this time, because unless we have a huge decline in the market in general.

Jeff Marks (4:17)

All right, so watch the trading action in Salesforce.

Jim Cramer (4:22)

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