Stock Track | Salesforce Plummets 5% Intraday Amid AI Sector Shakeout and Acquisition News

Stock Track02-11 23:52

Salesforce.com (CRM) stock experienced a sharp decline of 5% during Wednesday's intraday trading session. The drop contributed significantly to downward pressure on the Dow Jones Industrial Average.

The movement appears connected to broader concerns affecting the software sector. According to a Morgan Stanley analysis, the market is experiencing an AI shakeout, with investors shifting focus from mere AI exposure to proof of return on investment. The firm noted that many software and service companies, including Salesforce, were caught in a recent "broad and largely indiscriminate" sell-off, though it sees significant potential upside for the stock.

Additional factors may include the company's announcement of an agreement to acquire Cimulate, a deal expected to close in its fiscal first quarter of 2027. Furthermore, reports of internal employee activism urging CEO Marc Benioff to cut ties with U.S. Immigration and Customs Enforcement (ICE), coupled with recent workforce reductions and the upcoming fourth-quarter earnings report, may have contributed to investor uncertainty.

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