A series of executive departures at Salesforce (CRM) has spooked investors in recent days, but we’re sticking with the Club holding through the turnover and broader economic uncertainty because its enterprise software products remain integral to business in the digital age. In a CNBC interview Thursday, Jim Cramer pressed Salesforce co-founder and veteran leader Marc Benioff on the recently announced departure of his co-CEO , Bret Taylor. But Benioff declined to elaborate in detail on Taylor’s exit, despite pointed questioning. “Look, this just is what it is. People come and people go, but the most important thing is the success of the customers, the greatness of the products and the technology, and also that we operate with our core values,” Benioff said. Taylor will step down as his co-CEO at the end of January , at which point Benioff will resume his prior role as sole chief executive. For his part, Jim said he was satisfied with Benioff’s responses, while reiterating the Club’s continued backing of the stock. “The fact is that they have a product that is selling well and a business that will get through this period, even as there is so much smoke that you would think there’s a fire — but it’s just smoke,” Jim said following the interview. The interview came a day after The Wall Street Journal reported tensions had been brewing between the co-CEOs for months before Salesforce said on Nov. 30 that Taylor would step down. The Club is taking a wait-and-see approach to the stock before buying more shares, as indicated by our 2 rating . We’ve been a believer in Salesforce for years, and continue to think this is a broken stock, not a broken company , due to its stellar products. On Monday, Salesforce said Slack CEO Stewart Butterfield would also be leaving the company . Salesforce’s roughly $27 billion purchase of Slack — its largest acquisition ever — closed in July 2021 , a deal spearheaded by Taylor. Salesforce’s stock is down more than 18% this month on the back of the high-profile departures, and on Thursday traded at its lowest levels since spring 2018. Shares closed down 0.27% Thursday, at $130.13 apiece. Other Salesforce executives have recently left, or plan to step down soon, CNBC has reported . Salesforce Chief Strategy Officer and President Gavin Patterson is leaving effective Jan. 31, according to a Nov. 10 regulatory . Mark Nelson, who’d been president and CEO of Tableau, tweeted on Dec. 1 that it was his last day leading the Salesforce-owned data visualization firm. On Thursday, Baird downgraded Salesforce to neutral from outperform, or buy, and cut their price target to $150 from $200, citing elevated “execution risk” stemming from the executive turnover. While Benioff said he was grateful for Taylor and Butterfield’s contributions, the tech entrepreneur said he believes the company is still in good hands and will keep growing. “We have a lot of great people in this company. We always have. And we have a great management team,” he said Thursday. Salesforce and other growth-oriented tech stocks have struggled all year, dragged down by macroeconomic headwinds including higher interest rates, global economic volatility and a stronger U.S. dollar — challenges Benioff acknowledged. “Look, our economy, it’s not perfect. We all know that, but when it recovers, the most important thing is that you hold onto your customers because then it’s your customers that will grow with you,” Benioff said. (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.
Salesforce cofounder and co-CEO Marc Benioff speaks during the grand opening of the Salesforce Tower, the tallest building in San Francisco, Calif., Tuesday, May 22, 2018.
Karl Mondon | Bay Area News Group | Getty Images
A series of executive departures at Salesforce (CRM) has spooked investors in recent days, but we’re sticking with the Club holding through the turnover and broader economic uncertainty because its enterprise software products remain integral to business in the digital age.
