Salesforce.com's stock experienced a sharp decline of 7.86% during intraday trading on Thursday. The drop was part of a broader market movement affecting technology and software shares.
The sell-off in software stocks was triggered by a cautious cloud outlook from German software giant SAP and a significant post-earnings slide from ServiceNow. These developments deepened investor concerns that traditional software firms, including Salesforce, risk losing ground to rising competition from artificial intelligence (AI) players. The market is assessing whether massive AI expenditures by major tech companies will translate into returns, creating pressure on established software vendors.
This sector-wide pressure contributed to Salesforce's decline as investors reevaluated the competitive landscape for cloud-based business software in an increasingly AI-driven market.
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