We’re booking profits in a lagging stock as it pops on an OpenAI integration
We are selling 25 shares of Salesforce at roughly $247.71. Following the trade, Jim Cramer’s Charitable Trust will own 200 shares of CRM, decreasing its weighting to around 1.3% from about 1.5%. Salesforce shares rose 3% in afternoon trading on Monday after OpenAI announced that Slack — the communication and collaboration platform owned by Salesforce — will be integrated into Codex, its software engineering tool. It’s a nice move for the disappointing Salesforce, which has seen its stock drop about 26% so far this year. Monday’s pop eases some of the pain, but there’s still a significant overhang on the stock tied to concerns on Wall Street that artificial intelligence is “eating” the software industry . CRM YTD mountain Salesforce YTD Specific to Salesforce , the fear is that the traditional seat-based software-as-a-service business model has peaked, and that revenue from the company’s main AI platform, Agentforce, isn’t ramping fast enough to offset declines in its core applications. We’ll look for Salesforce to push back against this narrative next week when the company holds its annual Dreamforce conference in San Francisco. In the meantime, we’re using this pocket of strength as an opportunity to take some profits and trim the position. From this sale, we will realize a gain of about 13% on shares purchased in January 2022. (Jim Cramer’s Charitable Trust is long CRM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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