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Jim Cramer On Tesla Upgrade, Salesforce's Slack Acquisition

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Jim Cramer On Tesla Upgrade, Salesforce's Slack Acquisition

CNBC's Jim Cramer shared his first thoughts on the market Thursday, covering an upgrade on Tesla Inc (NASDAQ: TSLA) and the acquisition of Slack Technologies (NYSE: WORK) by Salesforce.com Inc (NYSE: CRM).

Cramer on Tesla: Goldman Sachs upgraded shares of Tesla from Neutral to Buy and raised the price target from $455 to $780.

“I felt the guy’s pain,” Cramer said on upgrading shares.

The Goldman Sachs price target is the highest of all analysts right now. It comes after the bank downgraded Tesla in June on demand concerns. The bank said Wednesday they were “incorrect.”

Cramer called the analyst note a “tough situation to upgrade up here.”

Related Link: Tesla’s Valuation Easier To Justify As Tech Company, Not Auto

Cramer on Salesforce: Cramer shared his thoughts on Salesforce and the stock falling off after announcing its $27 billion acquisition of Slack.

“Slack had a great quarter, took in a lot of customers,” Cramer said.

He said Salesforce can now take on Microsoft Corporation (NASDAQ: MSFT) with the deal: I think you have to do it."

Cramer said this deal is a way for Salesforce to become a $500 billion company. He said Salesforce can help Slack do three times the amount of sales it's currently doing.

Slack now has a bundling case against Microsoft, said Cramer, and he's “very surprised people aren’t even looking at how well Slack is doing.”

Price Action: Shares of Tesla are up 4% to $590.71 in pre-market trading Thursday. Salesforce shares are up 2% to $225.96.

 

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Posted-In: CNBC Goldman Sachs Jim Cramer Mark DelaneyM&A Media