Stock Market Today with Jim Cramer: Sell Salesforce Stock
Shares surged Thursday as the Dow Jones turned positive for the week, amid an accommodating statement about the Federal Reserve’s bond market decline.
Jim Cramer and Jeff Marks, Senior Portfolio Analyst at TheStreet, talked about selling some profitable equity investments with all three indices in the green and explained why the Evergrande Capital crisis can be described as a “house of cards. “total.
Salesforce.com: buy or sell?
Salesforce.com (CRM) – Get salesforce.com, inc. Report rose on Thursday after the CRM software provider raised its revenue forecast for 2022 ahead of its annual Investor Day conference.
Cramer has said now that we have this kind of upside in the market, although we are still oversold it is imperative that investors raise some money.
“I am not saying that we are dangerously short of cash. We have seen vulnerabilities in our [Action Alerts PLUS] portfolio and we take care of it, ”he said.
Cramer also suggested it was time to take a profit in enterprise software provider Salesforce after raising its revenue forecast for the year 2022 to between $ 26.25 billion and $ 26.35 billion.
Shares of Salesforce at last check rose 7% to $ 277.19.
Chinese officials have asked local authorities to prepare for the potential demise of heavily indebted real estate developer Evergrande, the Wall Street Journal reported Thursday.
Beijing is calling on local authorities across the country to prepare for a “possible storm” and has told them they should only intervene at the last minute to avoid the fallout from Evergrande’s disappearance.
Cramer said Evergrande was a “tactical error” by Chinese President Xi Jinping and that foreign investors are likely to lose a lot of money.
“The real estate business is 30% of their economy. There are some really, really rich people and he wanted to humiliate the rich. But what happened here is that this business has so much debt he almost has taken a lifetime’s savings from millions of people, “he explained.
Cramer said Xi guaranteed the estate management and apartment money Evergrande owed investors. “But everyone is going to lose money, especially foreign investors.”
“He [Xi] probably didn’t realize this was a total house of cards as he tried to punish billionaires. He tries to humiliate sector after sector after sector, which is why I worry about Estée Lauder (EL) – Get the Class A report from Estée Lauder Companies Inc. because Xi may or may not try to do the same with the cosmetics industry, ”Cramer added.
Salesforce and Estée Lauder Hold Stakes in Jim Cramer’s Action Alerts PLUS Investment Club. Want to be alerted before Cramer adds or removes stocks from the portfolio? Find out more now.