I have a $386.80 intrinsic value for Salesforce. With the current price of $150.12, this represents a 158% upside. I believe CRM is getting thrown out with the proverbial bathwater due to the fear that AI capabilities are making legacy software business models obsolete (SaaSpocalypse). CRM has over 20 years of formulating customer relationships AND gaining their trust in collecting their data, analyzing/utilizing it, and designing custom enterprise/vertical workflows. That is not something that can be.
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Salesforce has experienced a sharp decline, falling over 40% since January and hitting multi-year lows. Despite this outsized fear, Salesforce is actually delivering revenue acceleration, and is planning for continued top-line acceleration in 2H'27. ARR in Agentforce is growing at more than a 2x y/y clip, proving that Salesforce's AI innovation are driving true monetization rather than just a rebrand.
Salesforce (CRM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
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.