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Salesforce Stock Plunges: AI Fears Grip Investors
3 Dec
Summary
- Salesforce shares hit their lowest valuation since 2004.
- Stock has fallen 30% in 2025, underperforming Dow Jones.
- AI disruption concerns overshadow company's growth forecast.
Salesforce Inc. shares are trading at their cheapest point in history, yet investor confidence remains low due to mounting fears that artificial intelligence could hinder the company's growth. Despite Salesforce predicting robust revenue increases in the coming years, the market remains skeptical, with the stock experiencing a significant 30% decline in 2025. This downturn places Salesforce among the worst performers in major indices.
The current market valuation reflects the lowest point since the company's 2004 debut, trading at a multiple significantly below its historical average and the broader market. Analysts suggest that if Salesforce's own projections hold true, the current valuation presents a compelling entry point for patient investors. However, the persistent anxiety surrounding AI's disruptive potential continues to dampen sentiment.
While Salesforce has introduced its own AI solutions, such as Agentforce, these offerings are not yet projected to contribute substantially to financial results. This uncertainty keeps the company's long-term viability in the AI era in question. As a result, Wall Street's earnings and revenue estimates for next year have remained stagnant for the past 12 months, indicating a widespread wait-and-see attitude.
