Jim Cramer Says Salesforce Stock Slide Can Be Traced Back To Nvidia: 'Let's Not Buy A Really Big Software Package...'
Portfolio Pulse from Adam Eckert
Jim Cramer attributes the recent 20% drop in Salesforce (CRM) stock to the rapid advancement of AI, particularly driven by Nvidia (NVDA). Salesforce reported its first revenue miss in over a decade and issued weak guidance for the next quarter. Cramer suggests that companies are reassessing their software spending due to the potential for AI to reduce the need for human labor.

May 30, 2024 | 6:26 pm
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NEGATIVE IMPACT
Salesforce's stock dropped over 20% following its first revenue miss in more than a decade and weak guidance for the next quarter. Jim Cramer attributes this to companies reassessing their software spending due to AI advancements.
Salesforce's revenue miss and weak guidance indicate a significant short-term negative impact on its stock price. Cramer's analysis suggests that AI advancements are causing companies to rethink their software spending, further contributing to the selloff.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Nvidia's advancements in AI are indirectly impacting Salesforce's stock as companies reassess their software spending. This highlights Nvidia's influential role in the AI sector.
Nvidia's role in advancing AI technology is causing companies to reconsider their software investments, indirectly affecting Salesforce. This underscores Nvidia's significant influence in the AI sector, likely benefiting its stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50