Salesforce drops 3% as analysts warn AI pivot is hurting core growth
Salesforce shares fell about 3.5% Thursday as investors reacted to a fresh bearish analyst call arguing the company’s AI push is distracting management from a slowing core CRM business. The move follows heightened scrutiny of Salesforce’s growth outlook and capital-allocation shift toward debt-funded buybacks in recent weeks.
1. What’s moving the stock today
Salesforce (CRM) traded lower Thursday, down roughly 3.5% to about $169, after a renewed negative analyst stance highlighted concerns that Salesforce’s AI-heavy product and messaging push is coming at the expense of execution in its core CRM franchises. The call framed the setup as broad deceleration across the core business, with expectations for revenue growth below consensus and a valuation multiple that could compress if growth disappoints further. (investing.com)
2. Why the market is sensitive right now
Sentiment around Salesforce has been fragile in 2026 as investors debate whether AI products can meaningfully re-accelerate a mature SaaS model. That sensitivity has been amplified by Salesforce’s shift toward large, debt-funded capital returns—planning and then executing a massive bond sale to fund accelerated share repurchases—putting greater focus on balancing leverage, credit profile, and growth durability. (finance.yahoo.com)
3. What to watch next
Near-term, traders will focus on whether Salesforce can show measurable AI monetization without further softness in core demand indicators (such as bookings and remaining performance obligations trends) and whether additional analyst estimate cuts emerge. Investors will also monitor follow-through from the buyback execution and any incremental credit-market or ratings ripple effects tied to the new debt load used to fund repurchases. (trefis.com)