Jim Cramer suggested on Friday that the recent “SaaSpocalypse” selloff in software stocks may have been driven in part by short bets from Situational Awareness and said the worst could be over for Salesforce (NYSE:CRM).
Cramer said he is “beginning to wonder” how much of the episode was tied to the hedge fund betting against SaaS names, adding, “At the very least, the worst is over for Club name Salesforce.”
Salesforce CEO Rejects Saaspocalypse Fears
- Marc Benioff, CEO of Salesforce, dismissed concerns about a SaaSpocalypse as “nonsense” after the company reported a record second quarter. On Thursday, Benioff emphasized the strength of Salesforce’s performance, noting that bookings surged while attrition remained low. He urged an end to the negative narrative surrounding AI’s impact on enterprise software.
- Salesforce’s second-quarter revenue rose 11% year-over-year to $11.35 billion, and the company raised its full-year fiscal 2027 revenue guidance to a range of $46.1 billion to $46.4 billion. The partnership with Anthropic on Claudeforce AI was highlighted as a key driver of this success.
Salesforce Stock Surges on Anthropic Partnership
- Salesforce shares surged as much as 20% on Thursday following its fiscal second-quarter beat and raised outlook. The company attributed much of the profit surge to its investment in Anthropic, booking a $2.6 billion gain from the stake.
- The rally was further fueled by the expanded partnership with Anthropic, which introduced the Claudeforce tool. This integration allows sales staff to access Salesforce data directly within Anthropic’s Claude chatbot, enhancing operational efficiency.
Technical Analysis
Currently trading at $260.69, Salesforce is significantly outperforming its moving averages, trading 44.05% above its 50-day SMA and 30.12% above its 200-day SMA. The stock’s RSI(14) stands at 81.67, indicating an overbought condition.
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