Salesforce’s 32% YTD Slide and BofA Underperform Ahead of Earnings
BAC•Salesforce shares have fallen 32% this year and recovered just 8% off a three-year low, trailing the sector’s 12% decline and Nasdaq’s 19% advance. Bank of America’s reinstated underperform rating cites AI-driven growth reset, muted customer adds, limited up-sells and underwhelming AI monetization ahead of tomorrow’s earnings.
1. Stock Performance Year-to-Date
Salesforce shares have lost 32% since the start of the year and have only regained 8% off a three-year low struck on April 10, significantly underperforming the iShares Expanded Tech-Software ETF’s 12% decline and the Nasdaq 100’s 19% gain.
2. AI Competition and Rating
Bank of America recently reinstated coverage with an underperform rating, highlighting a structural growth reset driven by AI competition from Anthropic and OpenAI, along with muted net new customer additions, limited up-sell potential and an underwhelming AI monetization pathway.
3. Earnings Outlook
Investors are eyeing Wednesday’s earnings report to determine if steady revenue growth, AI integration and pricing power can reinvigorate the stock and address growing competitive concerns.
