• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Technology

Cramer: Here's the Best Tech Story That Nobody Knows

Autodesk gained 183,000 customers who now pay on a subscription model, 90% recurring revenue.
By JIM CRAMER May 19, 2017 | 08:06 AM EDT
Stocks quotes in this article: AMAT, CRM, ADSK, AMZN, SAP, RL, DE

It's hard to figure who won the night. Maybe it doesn't matter: Applied Materials (AMAT) , Salesforce (CRM) and Autodesk (ADSK) were that good.

The one that will be up the most is Autodesk, which remains the best tech story that nobody knows. That's because Autodesk, which makes software you badly need to make cellphone building and a host of other structures, gained 183,000 customers who now pay on a subscription model, 90% recurring revenue. That's an amazing transformation in just two years' time from a regular old software company.

Applied Materials portrayed itself as no longer cyclical, which is incredible because the semiconductor equipment business has been boom-bust forever. Why? Because of artificial intelligence and deep learning, and the equipment needed to make chips for them. Their chip machines make semis for phones, data centers and cameras.

Meanwhile, its traditional DRAM and NAND (flash) making machines are just on fire, with huge year-over-year rev gains because of scarcity -- 45%. Cash has built by 87%. Demand is extraordinarily strong. Just to be sure, the proper readthrough is to say this is fantastic for Nvidia, because there just aren't enough machines available to allow others to catch up with them.

Salesforce was all about picking up ecommerce business from retailers, basically giving them all access to the kind of Amazon (AMZN) -like interface -- if you like this, you might like that -- using artificial intelligence. This is a new and powerful vertical that they are beginning to take big share from -- witness the takeaway from SAP (SAP) of Ralph Lauren (RL) . The IDC numbers -- independent -- do show big share gains.

Which is best? They are all powerful, and here's the thing you must remember: when we have a reset day like we had two days ago, these three will attract money on the way down.

Oh, and not to spoil tech's ascendancy here, but Deere's (DE) report this morning shocked people with worldwide strength on agriculture.

Maybe it was the best of all.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity | Technology | Markets | Economy | How-to | Jim Cramer | Stocks

More from Technology

Why Would You Want to Own an Apple That's Going Bad?

Bruce Kamich
Sep 26, 2023 2:45 PM EDT

Here's why I wouldn't follow the advice of hold-but-don't trade AAPL.

IBM Knocks on the Door of Its 52-Week High, But Nobody Answers

Bruce Kamich
Sep 22, 2023 10:45 AM EDT

Let's drill down to see the risk/reward conditions of the stock and why it may no longer be a 'Best Idea.'

A Difficult Market Is Complicated by Unusual Strength in Just 7 Stocks

James "Rev Shark" DePorre
Sep 22, 2023 7:26 AM EDT

Will this corrective action continue, or will the indexes be saved once again by the 'Magnificent Seven'?

After Splunk Grab, Cisco's a Slam Dunk

Stephen Guilfoyle
Sep 21, 2023 11:54 AM EDT

I didn't like the idea of a cash deal at the start, but after going through the fundamentals, I think it's a wise move -- and here's why I'm adding the stock.

Take Profits on Splunk: Sell to an Anxious Buyer Called Cisco

Bruce Kamich
Sep 21, 2023 9:15 AM EDT

Take after legendary trader Jesse Livermore on this news.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:20 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading in Multiple Time Frames
  • 10:24 AM EDT BRUCE KAMICH

    This Could Get Messy

    A number of key stocks are getting close to import...
  • 01:41 PM EDT CHRIS VERSACE

    Latest AAP Podcast With Helene Meisler!

    Listen in as the Action Alerts PLUS podcast talks ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login