Jim Cramer has declared that Salesforce's management appears to believe the stock is significantly undervalued, pointing to recent insider activity and strategic moves. The comment comes amid a broader market reevaluation of enterprise software leaders.
- Salesforce’s market cap is $218 billion, with a P/E of 28.3, below its 5-year average of 35.6.
- Q4 2025 revenue reached $9.1 billion, up 11.2% YoY.
- Recent buyback activity increased by 6.4% in the past quarter.
- Stock underperformed the S&P 500 by 22.7 percentage points over the last year.
- Six of 14 analysts have raised price targets in the past two weeks.
- Trading volume rose 4.1% over the last three days following Cramer's remarks.
Jim Cramer has voiced strong conviction that Salesforce (CRM) is trading at a level that reflects mispricing, asserting that company leadership likely sees the stock as substantially cheaper than its intrinsic value. His remarks follow a series of strategic moves, including a 6.4% increase in share buybacks over the past quarter and the announcement of a new AI-driven cloud integration platform. These actions, according to Cramer, signal internal confidence not fully reflected in the market price. Salesforce’s current market capitalization stands at approximately $218 billion, with a trailing P/E ratio of 28.3—below its five-year average of 35.6. Despite this, the company continues to report double-digit revenue growth, with Q4 2025 revenue reaching $9.1 billion, up 11.2% year-over-year. The stock has underperformed the S&P 500 over the past 12 months, declining 7.3% compared to the index’s 15.4% gain. Cramer’s commentary is likely to influence investor positioning, particularly among growth and tech-focused funds. Analysts tracking CRM have begun revising their price targets upward, with six of 14 firms increasing their outlooks in the last two weeks. The stock has seen a 4.1% spike in trading volume over the past three days, indicating heightened interest. The implications extend beyond CRM, affecting investor sentiment toward other enterprise SaaS players like Adobe (ADBE) and ServiceNow (NOW), which are also undergoing strategic shifts. As AI integration accelerates across the cloud sector, management actions at Salesforce may be viewed as a bellwether for broader sector confidence.