Shares of Salesforce posted their 14th consecutive day of losses as investors remain unconvinced of the company's AI momentum.
Salesforce Inc. shares extended their decline on Monday, falling 1.44% to $149.6 and putting the stock on track for a record 14th consecutive daily loss. The move comes amid continued pressure on software companies as investors reassess the impact of artificial intelligence on the software-as-a-service (SaaS) model.
Salesforce stock falls and is on pace to close lower for a record 14th consecutive session.
Salesforce is transitioning from seat-based SaaS to metered, workflow-driven pricing, positioning itself as the metering layer for agentic enterprise software. Q1 FY27 results highlight robust 13% revenue growth, 34.8% non-GAAP operating margin, and $6.6B in free cash flow, with data/agentic layers growing 3x faster than legacy apps. Agentforce's usage-based model decouples revenue from headcount, compounding within the installed base; audit-lineage and zero-copy federation create a regulatory moat.
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Salesforce is undervalued as investors overlook its transformation into an AI-driven digital labor platform through Agentforce. Agentforce, integrated with Slack, positions CRM to automate enterprise workflows, leveraging deep client integration and a robust data foundation. CRM's consumption-based model and Slack's role as the enterprise AI interface are driving rapid adoption and revenue growth, underappreciated by the market.
CRM announces 13 acquisitions over the past twelve months, with it building upon their historical growth-by-acquisition strategy albeit triggering a deteriorating balance sheet health. Otherwise, the strong free cash flow generation and the expanding multi-year backlog mitigate risks, significantly aided by the adj EPS accretion from the accelerated share repurchase cadence. Agentic AI integration and strategic acquisitions like Slack/Informatica drive accelerating workflow and ARR growth, lending credibility to CRM's AI beneficiary status and reiterated FY2030 guidance.
Salesforce now has a lot of businesses to integrate.
Salesforce Inc (NYSE:CRM, XETRA:FOO) has agreed to acquire customer agent company Fin for approximately $3.6 billion, a deal Wedbush says confirms the company is moving faster and more aggressively than most expected to lock up the agentic AI market. The move hasn't surprised analysts, who argue that with roughly $12 billion on its balance sheet and three billion-dollar-plus acquisitions completed in the past year alone, Salesforce is steadily shifting toward buying capability rather than building it.
Salesforce stock continues its strong downward trend this year, and is now hovering near its lowest level since 2023. CRM has plunged by 55% from its all-time high, with its market capitalization falling from $346 billion to $134 billion, a $212 billion wipeout.
Salesforce's record cash flows, rising margins and $50B buyback plan highlight its capacity to reward shareholders while investing in growth.
Salesforce remains a "Strong Buy," with robust fundamentals and aggressive AI investments despite recent underperformance and market skepticism. CRM delivered 13% YoY revenue growth to $11.1 billion, aided by the Informatica acquisition, and expanded GAAP operating margin by 130 bps. Management is optimistic for accelerated growth in H2, driven by Agentforce adoption and AI integration, while maintaining significant share repurchases.