Key Stats for Salesforce Stock
- Price Change: -7.0%
- Current Price: $241
- Analyst Consensus Target: $329
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What Happened?
Shares of Salesforce (CRM) tumbled 7.0% on Tuesday, marking its steepest single-day decline since May 2024. A sudden wave of AI anxiety swept through the software sector, triggering this sharp sell-off.
First, AI startup Anthropic released a preview of a new tool called Cowork. This “agentic” AI can perform broad work tasks beyond just coding. Consequently, investors fear these agents might replace traditional SaaS platforms like Salesforce instead of just helping them.
Second, market sentiment worsened after a downgrade by Oppenheimer for Salesforce’s peer, Adobe (ADBE). Analysts warned that AI tools are not boosting Adobe’s sales as quickly as hoped.
As a result, investors quickly rotated out of high-valuation cloud stocks like ServiceNow (NOW) and Workday (WDAY).
See analysts’ growth forecasts and price targets for Salesforce stock (It’s free!) >>>
Is Salesforce Stock Undervalued Today?
Currently, the market is shooting first and asking questions later. Investors worry that nimble startups will eat the lunch of incumbents.
However, this reaction ignores the defensive moat Salesforce is building. During his presentation at the J.P. Morgan Healthcare Conference this week, President Mark Sullivan defended their strategy. He emphasized that Salesforce is becoming a “true agentic enterprise.”
Moreover, they are deeply embedded in regulated industries like life sciences.
This drop has created a massive disconnect between Salesforce’s stock price and its fundamental value. The market panics over short-term headlines. Yet, the long-term cash flow story remains intact.
According to TIKR’s Advanced Valuation Model, Salesforce now trades significantly below its intrinsic value.
- Implied Fair Value: $422
- Current Price: $241
- Potential Upside: +75.1%
The model assumes Salesforce can maintain mid-single-digit revenue growth while expanding margins. If the company hits these targets, today’s sell-off looks like a rare buying opportunity.
How Much Upside Does Salesforce Stock Have From Here?
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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!
