Jim Cramer on Adobe and Salesforce: AI's Impact on Software Companies

Adobe and Salesforce: Shifting Market Perception

• 📌 Jim Cramer is focusing on Adobe ahead of its earnings report on the 11th, highlighting the market's current skepticism towards traditional software companies versus those that are fully software-as-a-service.
• 💡 Both Adobe and Salesforce are described as amazing companies with good products, but they are now perceived as casualties of the AI revolution.
• ⚠️ Cramer expresses personal soul-searching and a feeling of being "so wrong" about these companies, which were once favorites.

The AI Narrative and Customer Impact

• 🤖 The prevailing narrative is that these companies are being "blown up by AI," a sentiment Cramer has been fighting.
• 📉 The shift from a per-person pricing model to a consumption-based model, along with the ability for customers to develop their own AI, is impacting revenue.
• ⚡ The technology itself has changed, potentially cannibalizing existing customer needs or offering AI development capabilities that reduce reliance on the companies' core offerings.

Leadership and Future Outlook

• 🧠 Despite current market perceptions, Cramer refuses to believe that leaders like Shantanu Narayen (Adobe) and Marc Benioff (Salesforce) are finished in their careers.
• 🚀 He acknowledges that while these leaders were "king" in a previous era of human-driven work, the market has spoken, and a new era may be emerging.
• 📊 Cramer mentions looking for the "next purchase" and briefly touches on Lululemon as another company that was once "king" but is now lagging.