Was Jim Cramer Right About Salesforce (CRM)? A Deep Dive into the Bulls and Bears

Salesforce, Inc. (CRM) has long been a cornerstone of the software sector, but its journey through 2024 and early 2025 has been anything but straightforward. Jim Cramer, host of Mad Money and a vocal advocate for high-growth stocks, has repeatedly championed CRM’s potential. Yet the stock’s performance has been uneven, raising questions: Was Cramer right about Salesforce? Let’s dissect the evidence.

Cramer’s Case for Salesforce: The Bulls’ Argument

Cramer has consistently highlighted Salesforce’s unified platform—spanning sales, customer service, marketing, and AI—as a key differentiator. In April 2024, he ranked CRM 3rd on his list of stocks with “huge upside potential,” citing a 34.2% average analyst price target upside and 162 hedge funds holding the stock. His thesis hinged on two pillars:
1. Long-term resilience: Salesforce’s 20-year track record as a CRM software leader placed it 14th on Cramer’s list of top-performing stocks since Mad Money’s debut in 2005.
2. AI-driven reinvention: Cramer praised Salesforce’s Agentforce platform, which automates customer interactions, as a critical growth lever. Bank of America analysts echoed this, calling CRM a “top AI beneficiary” and projecting 1-2% annual revenue growth through 2027 due to AI adoption.

Reality Check: Stock Performance and Analysts’ Split Views

While Cramer’s vision is compelling, reality has been mixed. Despite Q2 2025 earnings beats (8% revenue growth to $9.33B, with EPS of $2.56), CRM’s stock languished. As of May 2025, it was down 2% year-to-date, lagging the S&P 500’s 17% gain. Key factors include:
- Competitive pressures: Rival ServiceNow (NOW) outpaced CRM’s growth, with 22% quarterly revenue growth vs. CRM’s 11%.
- AI skepticism: While Cramer acknowledged AI’s potential, he prioritized pure-play AI stocks for faster returns. Guggenheim Securities even downgraded CRM to “Sell” in early 2025, citing concerns about Agentforce’s monetization.

The AI Factor: A Double-Edged Sword

Cramer’s bullishness on Salesforce’s AI strategy is partly vindicated. Bank of America’s analysis underscores the promise of Agentforce, which Salesforce showcased at its Dreamforce conference in late 2024. This helped drive a 26% rally from September 2024 to January 2025, and the company plans to hire 2,000 employees to support AI sales. Yet challenges remain:
- Execution risks: Salesforce’s Q2 results showed slower growth than peers, and CEO Marc Benioff’s dismissal of ServiceNow as a “Wienerschnitzel” (vs. Salesforce’s “McDonald’s”) drew criticism for downplaying competitive threats.
- Market sentiment: Piper Sandler’s April 2024 $315 price target cut (from $400) reflected broader sector headwinds, including tariffs and investor fatigue in software stocks.

The Bottom Line: Cramer’s “Right”… But with Caveats

Cramer’s long-term thesis holds water. Salesforce’s $326B market cap, $34.8B in annual revenue, and institutional support (162 hedge funds) affirm its status as a software giant. Its AI pivot, while still evolving, aligns with market trends. However, his short-term calls have stumbled:
- Stock underperformance: CRM’s 2% YTD decline contrasts with Cramer’s upbeat rankings.
- AI timing: While Cramer was correct about AI’s importance, he overestimated CRM’s ability to capitalize quickly. Pure AI stocks like NVIDIA (NVDA) surged while CRM lagged.

Conclusion: A Complicated “Yes”

Jim Cramer was right about Salesforce’s long-term fundamentals and AI potential. Its platform dominance, institutional backing, and strategic bets on Agentforce position it to thrive in the coming decade. However, his short-term optimism has clashed with reality: CRM’s stock struggles reflect broader sector slowdowns and faster-growing rivals.

Investors should weigh Cramer’s insights against the data:
- Upside: If Agentforce delivers on Bank of America’s 1-2% revenue growth projections, CRM could rebound.
- Downside: Competitors like ServiceNow and macro risks (tariffs, AI adoption hurdles) remain threats.

For now, Salesforce is a hold—a stock to monitor closely but not yet a clear buy. Cramer’s vision is half-right: the future belongs to Salesforce, but patience is required.

John Gapper’s analysis combines deep research with an eye for market nuance, ensuring investors see both the forest and the trees.