On July 14, Salesforce declined 5.38% in regular trading, trading at approximately $165.33/share, with turnover of $3.85 billion. The drop was triggered by a wave of analyst downgrades amid concerns over the company's AI monetization trajectory.
Specifically, Evercore ISI cut its target price from $260 to $250 while maintaining an Outperform rating. Bernstein downgraded the stock from Outperform to Market Perform, citing weak customer feedback on Salesforce's AI agent product Agentforce. KeyBanc also downgraded from Overweight to Sector Weight. The downgrades reflect growing market skepticism about the near-term monetization pace of Salesforce's AI offerings.
Adding to the pressure, IBM's worse-than-expected preliminary results weighed heavily on the broader software sector, with ServiceNow falling over 7%, Workday dropping over 6%, and Adobe declining over 4%. Despite Salesforce recently securing a $13.5 billion defense contract and deepening its AI partnership with Anthropic, the confluence of analyst caution and sector-wide selling drove significant intraday weakness.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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