Jim Cramer -- Stick With Salesforce as Nimble Storage Gets Crushed
Up in the cloud, Salesforce.com (CRM) - Get Report is still the winner, TheStreet's Jim Cramer said Friday.
That was reinforced by Nimble Storage (NMBL) , whose stock has collapsed over 47% after reporting disappointing earnings on a day when stocks are moving higher.
A lot of investors thought Nimble was "right in the sweet spot," as a hybrid storage company for Big Data, Cramer, co-manager of the Action Alerts PLUS portfolio, explained on CNBC's "Mad Dash" segment.
They were wrong. Nimble Storage missed on revenue and earnings expectations while providing "very weak guidance" for next quarter, Cramer said, adding these investors were caught off guard.
Nimble Storage NMBL data by YCharts
Cramer said he did not find the explanation for lower guidance to be "satisfactory," and many of the analyst downgrades that poured in this morning agreed. This earnings report "took people's breath away," he added.
However, Cramer still believes in the business of Big Data and Big Data interpretation, and that is why he thinks Salesforce.com is a buy after toppingearnings expectations and providing higher-than-expected guidance earlier this week.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.