Jim Cramer Says Google (GOOGL) Needs Salesforce (CRM)

Salesforce.com (NYSE: CRM) shares are now trading in positive territory following a mention by Jim Cramer earlier saying that Google (NASDAQ: GOOGL) needs to by Salesforce.com. This follows a Street Insider post back in January where we wrote "It would appear reasonably obvious that Alphabet would over pay for Facebook (NYSE: FB), struggle to buyout Amazon (NASDAQ: AMZN), leaving the rumor-popular Salesforce as the next candidate. Alphabet did not buyback any stock in 2016, likely shoring up capital for a Salesforce purchase. Given that Microsoft, a leading rumored contender for Salesforce, bought LinkedIn, it appears that Alphabet is on the prowl for Salesforce."

Now today, on CNBC during a segment on Unusual Option Activity, at the 1:40 mark Jim Cramer goes on about what Google needs (emphasis ours): "I think Alphabet, Google, needs very much to get away from a model that is advertising based. People feel they are trapped in it. That's why they're doing Waymo, autonomous cars, which is going very very well. It's why they're doing data-center work, the $400 million that SNAP (NYSE: SNAP) is paying them. But if you want to own the enterprise, OK you want to own it, you just BUY SALESFORCE. You take $80 billion and you buy it. Does Marc Benioff want to sell with the beautiful new tower coming and loving the independence of it? They have a close relationship. I think it's up to Benioff if he wants to sell but I do think that Alphabet NEEDS BENIOFF! NEEDS SALESFORCE to get a higher price to earnings multiple."

And there you have it. Google needs Salesforce. Shares ran up nearly 80 cents or ~1% following the comments.

You May Also Be Interested In

• BofA Securities Double Downgrades O-I Glass Inc. (OI) to Underperform
• BofA Securities Upgrades AptarGroup (ATR) to Buy
• BofA Securities Downgrades Sylvamo Corp. (SLVM) to Neutral