Why Salesforce Was Falling Today, Even as the Nasdaq Rallied
Salesforce shares fell up to 3.9% on Tuesday, diverging from a 1.4% rally in the Nasdaq Composite. The decline was triggered by a Morgan Stanley analyst downgrade from 'Overweight' to 'Equal Weight' and a price target cut from $287 to $185. Analyst Adam Wood acknowledged positive leading indicators for Salesforce's new Agentforce AI offerings but expressed concern that the AI transition is cannibalizing legacy subscription revenue. Agentforce currently accounts for only about 7% of Salesforce's projected $46 billion in annual revenue. Despite the downgrade, Salesforce trades at roughly $168 per share, below the new target, and at a valuation of just 12 times earnings, which some see as potentially undervalued if the company successfully navigates the AI transition.
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