Key Stats for Salesforce Stock
- Price change for Salesforce stock in last 6 months: -37%
- $CRM Stock Price as of Jul. 9: $163
- 52-Week High: $274
- $CRM Stock Price Target: $246
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What Happened?
Salesforce (CRM) stock dropped more than 2% after KeyBanc Capital Markets downgraded the company to “Sector Weight” from “Overweight” and withdrew its price target. Analyst Jackson Ader wrote that it’s hard to find evidence of future upside for Salesforce stock right now.
Ader’s main concern is customer feedback. KeyBanc says it attends more Salesforce partner and customer events than any other company it covers, and the message from those customers has been consistent on two points.
First, many customers’ data isn’t organized well enough to actually do meaningful AI work. Second, Agentforce, Salesforce’s AI agent platform, just isn’t living up to expectations as a product yet.
KeyBanc also pointed to its recent CIO survey, which the firm said “delivered another blow” to its outlook on Salesforce.
While Salesforce has said Agentforce’s order value is growing faster than the company’s overall order value, KeyBanc argues the financial disclosures don’t clearly support that claim.
According to Ader, the only real argument left for buying Salesforce stock is its low valuation, but even that isn’t much of an edge once you adjust for growth compared to peers.
This downgrade comes despite what appeared to be a strong Q1 on paper.
- Salesforce reported revenue of $11.13 billion, up 13% year-over-year, and closed 98 deals worth more than $1 million in annual contract value.
- Agentforce ARR crossed the $1 billion mark, and
- CEO Marc Benioff has repeatedly pointed to token processing numbers, 28.6 trillion tokens in Q1 alone, as proof of real customer adoption.
- Companies like PepsiCo, Falabella, and Singapore Airlines have publicly been named as Agentforce customers.
- The U.S. Air Force’s 441st Vehicle Support Chain Operations Squadron also just started using Salesforce’s Missionforce National Security platform to manage more than 84,000 vehicles.
Still, Salesforce’s Q2 revenue guidance came in slightly below Wall Street’s expectations in May, raising concerns that competition from AI tools built by rivals like OpenAI and Anthropic could be pressuring demand for enterprise software.
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What the Market Is Telling Us About Salesforce Stock
Retail investor sentiment has turned notably negative too.
On Stocktwits, sentiment around Salesforce stock shifted to “extremely bearish” as of late Wednesday, down from just “bearish” the day before.
The core tension here is pretty clear. Salesforce management keeps pointing to strong headline numbers like token usage, deal counts, and Agentforce ARR as proof the AI strategy is working.
But analysts like KeyBanc are hearing something different directly from customers on the ground: that the product and the underlying data infrastructure aren’t quite ready yet.
With Salesforce stock down 36% year-to-date and no set date yet for Q2 earnings, investors will be watching closely to see which story proves more accurate.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
