Cramer says the deal could not be done during the Steve Ballmer regime because Ballmer did not get along with Salesforce. But new Microsoft CEO Satya Nadella is ready and willing to sit down with Salesforce CEO Mark Benioff.
Cramer believes the deal is important for Salesforce because it has a division called Exact Target, which it recently acquired, that runs on a Microsoft cloud platform. Salesforce has not risen yet, though, and Cramer says this is important to note because he has contended that software-as-a-service companies and the NASDAQ have bounced as far as they can.
Meanwhile, Microsoft, an "old tech" name, is rising. Cramer likes old tech over new tech right now because new tech and the NASDAQ have come "too far, too fast" on the way up. He recommends Microsoft but says to be careful with Salesforce.
TheStreet Ratings team agrees, as it rates Microsoft as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
TheStreet Ratings team also rates Salesforce.com as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:"We rate SALESFORCE.COM INC (CRM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk."