Salesforce is buying back a massive amount of stock — what it means

Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Stocks started the week on a rise but remain well off session highs. Oil continues to be the story of the day, with WTI crude rising to around $96 a barrel after falling to roughly $93 a barrel shortly after 10 a.m. "Going up" when the S&P Oscillator is this oversold can be misleading, especially in a market that is hypersensitive to every headline in the news. We are in a market that can change on a dime. However, when the indicator reaches these -7% levels, we gradually put some money to work earlier in line with our purchasing discipline. The oscillator suggests that stocks are ready to rise, but positive developments in the oil market may still be required for a sustainable rise. Salesforce may have launched the largest corporate accelerated share buyback program in history. The software company announced Monday that it had struck deals with several major institutions to repurchase 103 million shares, representing about 80% of the shares it expects to buy back under a $25 billion ASR and a broader $50 billion share repurchase program. The company recently raised $25 billion in debt to finance these buybacks; While some saw this move as controversial, others viewed it as opportunistic. CEO Marc Benioff clearly believes that the "SaaS apocalypse" is completely exaggerated for Salesforce and that the stock is too cheap, which explains why he's aggressively buying back shares at current levels. With no major earnings or economic reports tonight and Tuesday morning, our attention will turn to conferences and company updates, whether it's reactions to Nvidia CEO Jensen Huang's keynote speech at the company's annual GTC conference on Monday, comments from Honeywell and Boeing at Bank of America's industrial conference, as well as Dover at JPMorgan's Industrial conference. We'll also be following the Optical Fiber Communications Conference and Exhibition, where Corning will showcase many new fiber and cable innovations designed for AI data center networks. (See here for a complete list of stocks in Jim Cramer's Charitable Trust.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.