Salesforce Stock Faces Third Straight Weekly Loss Amid AI Stock Market Slump : Lauren Metcalf
by: Lauren Metcalf
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**Summary:** Salesforce's stock has experienced a decline for three consecutive weeks, with a recent drop during the TrailblazerDX event, despite the announcement of their new AI initiative, Agentforce 2dx. While Salesforce's stock had previously surged due to optimism around AI and tech investments, the market is now becoming more competitive and challenging. CEO Marc Benioff introduced Agentforce last year, shifting the company’s strategy towards autonomous AI agents. Initially, analysts were optimistic about Salesforce, with some predicting it would be a top stock pick for 2025. However, as more companies like Alphabet, Microsoft, and OpenAI enter the AI agent market, Salesforce has faced increased competition. Concerns over the economy, including tariffs, recession fears, and a disappointing Q4 earnings report, have contributed to a decline in AI stocks overall. Salesforce's revenue from Agentforce is not expected to significantly impact earnings until 2026, leading to caution among investors. The company's stock has dropped about 12% this year and 2% last week alone. Salesforce's Relative Strength Rating has also decreased, indicating weaker performance compared to a year ago. Despite these challenges, analysts from Needham have set a target price of $400 for Salesforce, suggesting potential growth. Other tech stocks, like NVIDIA and Broadcom, are also facing declines, with some analysts predicting a recovery by late 2025. **Additional Context:** The AI market is currently experiencing a downturn, often referred to as "the busted AI trade." Analysts believe this slump is temporary, and there is hope for a rebound in the market in the near future. **Hashtags for SEO:** #Salesforce #StockMarket #AI #TechStocks #Agentforce #Investing #MarketTrends #FinancialNews #BusinessAnalysis #WallStreet
Salesforce’s stock edged down last week during TrailblazerDX, marking their third consecutive weekly loss despite the announcement of Agentforce 2dx.
Salesforce stock has shot up in the past six months or so, with the Trump tech rally and Agentforce AI promise getting investors excited. However, the tech stock tide is starting to turn…
The New, Competitive AI Agent Market
Salesforce CEO Marc Benioff announced the release of Agentforce at last year’s Dreamforce, as Salesforce officially conducted a “hard-pivot” from copilots to autonomous agents.
Bank of America and Needham were initially “bullish” on Salesforce and Agentforce going into this year, with two Wall Street investors highlighting Salesforce as their top pick for 2025.
Since then, the AI agent market has grown very competitive – Salesforce isn’t the only company changing its approach to AI, as others have followed to find tools that will help boost productivity.
Alphabet, Microsoft, and, more recently, OpenAI have all made their intentions clear to enter the AI agent market. This has caused AI stocks have taken an overall hit due to a combination of factors, including concerns over tariffs, recession fears, political uncertainty, and a lukewarm Q4 earnings report.
Salesforce, for example, indicated that Agentforce has yet to make a significant impact on revenue and likely won’t until 2026, contributing to investor caution.Salesforce have faced the recent brunt of this, shedding roughly 12% of its stock this year to date and going down 2% last week, marking their three-week decline.
According to IDB MarketSurge, Salesforce’s Relative Strength Rating – which measures a stock’s relative performance over 12 months – fell from 65 to 47 last week, a long way from their score of 91 a year ago.
Needham also set a target price for Salesforce of $400. As it stands, Salesforce’s current stock price is $122.95 below Needham’s target price of $400 – 30.74% away from reaching that target.
Alongside this, NVIDIA stock is down nearly 13% so far in 2025, Broadcom is down 17%, and Astera Labs is down a tremendous 48%.
Describing this period as “the busted AI trade”, Mizuho Securities trading desk analyst Jordan Klein believes that the AI market is simply facing a slump and will bounce back.
“It will come back strong in 2H25… mark it down,” said Jordan.
Final Thoughts
The stock market picture certainly doesn’t look ideal, but it seems as though everyone is facing losses in this AI market slump.
It’s still early doors, and there is an expectation that these numbers should soon bounce back accordingly.
The post Salesforce Stock Faces Third Straight Weekly Loss Amid AI Stock Market Slump appeared first on Salesforce Ben.
March 13, 2025 at 10:43PM
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