Salesforce Gains About 4% in Software Rally Despite Underperform Rating
Salesforce shares climbed about 4% during a 1.1% rally in the iShares Expanded Tech-Software ETF, marking a fourth consecutive gain for U.S. software stocks after AI-driven declines. Bank of America Global Research assigned Salesforce an ‘underperform’ rating, warning a structural shift could impair its business model.
1. Sector Rebound Fuels Salesforce Gains
U.S. software stocks posted a fourth straight session of gains, with the iShares Expanded Tech-Software Sector ETF rising 1.1% to its highest level since January. Salesforce shares participated in the rally, climbing between 3.7% and 4.3% as investors reassessed AI-related risks.
2. Bank of America Underperform Call
Analysts at Bank of America Global Research reinstated an “underperform” rating on Salesforce, citing a structural shift that could permanently impair the company’s business model. ServiceNow, by contrast, received a “buy” rating based on its entrenched position in enterprise workflows.
3. Technical Analyst Sell Recommendation
A market technician advised selling Salesforce as a laggard among Dow components, reflecting skepticism over its near-term momentum and margins. The call underscores the divergence between technical indicators and the broader sector’s rebound trend.