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Core Viewpoint - Salesforce Inc (NYSE:CRM) is facing significant stock price declines, with shares down 43% over the past year and 30% year-to-date, amid concerns about its performance and competition in the AI space [1]. Group 1: Company Performance - Salesforce Inc announced the acquisition of Momentum to enhance its Agentforce AI platform and Slackbot, aiming to improve customer interaction and workflow management [1]. - The Chief Product Officer of Salesforce, Steve Fisher, emphasized that the acquisition will allow for better integration of customer feedback into their services [1]. - Despite the acquisition, there are mixed sentiments regarding Salesforce's overall business performance, with some analysts expressing concerns about customer reluctance to adopt AI alternatives [1]. Group 2: Analyst Opinions - Stifel reduced its price target for Salesforce shares from $260 to $200 while maintaining a Neutral rating, citing a lack of enthusiasm among customers for AI solutions [1]. - Mizuho also lowered its price target from $340 to $280 but kept an Outperform rating, noting that Salesforce is experiencing negative sentiment due to fears surrounding AI disruption [1]. - Jim Cramer, a notable commentator, has expressed uncertainty about Salesforce's broader business performance despite positive feedback on the Agentforce platform [1][3].

Core Insights - Salesforce is expected to report earnings after the market closes on Wednesday, with traders anticipating significant stock movement, potentially swinging up to 9% in either direction by the end of the week [1][7] - The stock has lost approximately one-third of its value since the beginning of the year due to concerns over new AI tools from competitors disrupting the software industry [2] - Analysts at UBS and Oppenheimer have lowered their price targets for Salesforce to $200 and $275, respectively, citing potential short-term growth challenges due to increased competition and customer spending caution [4] Financial Expectations - Salesforce is projected to report adjusted earnings per share of $3.05, with a 12% year-over-year revenue increase to a record $11.18 billion for the fourth quarter, according to estimates from Visible Alpha [5] - Despite recent stock declines, analysts remain largely bullish, with 15 out of 20 analysts maintaining "buy" or equivalent ratings, and an average price target of $313 suggesting over 75% upside from Monday's close [6]

Group 1 - OpenAI is perceived as a potential threat to enterprise software companies like ServiceNow, Salesforce, and Snowflake, as it aims to replace their software with its own AI products and agents [2][4][11] - OpenAI announced a new series of partnerships with consulting firms to enhance its sales of cutting-edge AI management software, although the incremental value of these partnerships remains unclear [3][11] - The stock prices of software companies, including Salesforce and ServiceNow, have seen significant declines, with drops between 3% to 9% on a recent day, contributing to an overall market decline of 1.2% in the Nasdaq index [4][11][12] Group 2 - PayPal's stock has plummeted 85% over the past five years, leading to a market capitalization of approximately $41 billion, raising questions about potential acquisition interest from competitors [12][13] - Stripe, a competitor of PayPal, may find it challenging to acquire PayPal due to cultural differences, despite PayPal owning Braintree, a competitor of Stripe [12][13] - Block, led by Jack Dorsey, could consider acquiring PayPal, but regulatory concerns may arise due to its direct competition with PayPal's Venmo [13]

Core Viewpoint - Salesforce's business performance is strong, but the stock may not be an obvious buy due to concerns over stock-based compensation and the impact of AI on profit margins and pricing power [1][3][13]. Financial Performance - In Q3 of fiscal 2026, Salesforce reported a revenue increase of 9% year over year, reaching $10.3 billion, with free cash flow rising 22% to $2.2 billion [5]. - The company incurred $805 million in stock-based compensation expenses, approximately 8% of quarterly revenue, which is higher than Alphabet's 6% in 2025 [6][8]. Shareholder Returns - Salesforce returned $4.2 billion to shareholders in Q3, including $3.8 billion in share repurchases and $395 million in dividends, which is significant for a company with a market cap of about $170 billion [8]. AI Integration and Market Dynamics - Salesforce is heavily investing in AI, with its AI-based products showing promising results, such as Agentforce and Data 360's annual recurring revenue reaching nearly $1.4 billion, up 114% year over year [11]. - The introduction of AI may increase competition and lower margins, creating uncertainty in the market [12][13]. Valuation Considerations - Despite a price-to-earnings ratio around 24, the stock is not considered cheap enough given the uncertain environment and revenue growth in the high single digits [13]. - There is a preference for more clarity on Salesforce's long-term profitability and market position before making investment decisions [14].

Market Overview - The U.S. markets experienced a mixed day, with a focus on the U.S. 2-year yield rising by four basis points following a Supreme Court ruling that raised questions about inflation and interest rates [2][6] - Gold prices increased as investors reacted to the risk-off sentiment in the market, while tech stocks, particularly in the software sector, saw declines of approximately 1.5% [2][4] Technology Sector - The software sector is facing significant pressure, with fears that AI tools may replace traditional software suites, leading to a 30% decline in an index of stocks including Salesforce and Adobe since their record highs [4][70] - Companies like IBM have seen substantial stock declines, with IBM down over 13% amid concerns about AI disruption [70][77] Payment and Delivery Services - PayPal's stock rose nearly 5% due to takeover interest, contrasting with the broader tech sector's struggles [3] - Delivery service companies such as DoorDash and Uber are facing challenges as hypothetical scenarios suggest that AI could disrupt their business models, contributing to stock declines [5][71] Tariff and Trade Implications - The Supreme Court ruling on tariffs has created uncertainty, particularly for major importers like Home Depot and TJX, as the market grapples with the implications of potential tariff changes [6][80] - The Attorney General of Nevada indicated that states are considering actions to recover tariffs collected, which could amount to hundreds of billions of dollars [22][23] Economic Indicators - The current economic environment shows signs of growth, with global growth rates around 2.5% and 3% including emerging markets, while inflation is gradually decreasing [10][17] - The bond market is experiencing a steepening yield curve, driven by long-term inflationary concerns and an excess supply of government debt [12][14] Trucking and Transportation Sector - The trucking industry is witnessing structural changes, with a significant reduction in driver availability leading to higher rates and potential long-term impacts on capacity [57][68] - Demand for transportation services is still down year-over-year, but there are positive indicators such as increased trade volumes and a projected recovery in the second half of the year [59][63]

CNBC's Jim Cramer offered a blunt takeaway from Monday's selloff: Artificial intelligence concerns have left the stock market incredibly fragile.After the S&P 500 and Nasdaq each shed more than 1%, the "Mad Money" host urged investors to exercise caution because stocks were "just too easy to take down today." The reason for the early-week downturn was a post from Citrini Research over the weekend — arguing the AI boom could hurt the economy and cause unemployment to shoot up to 10% if white-collar jobs were ...

The Dow Jones Industrial Average (^DJI) was down 821.91 (-1.66%) points today, closing at 48,804.06, while Dow Futures (YM=F) fell 857.00 (-1.73%) to 48,817.00. The main narrative driving the market was a sudden 15% blanket tariff announcement, which reignited trade war fears and global economic uncertainty. This policy shift, combined with hawkish Federal Reserve commentary suggesting a "coin flip" for future rate cuts, triggered a massive rotation out of cyclical and growth sectors into defensive assets.F ...

Software Earnings Arrive. It's a Crucial Time for the Industry. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Software Earnings Arrive. It's a Crucial Time for the Industry.By [Angela Palumbo]ShareResize---ReprintsSalesforce is scheduled ...

Salesforce Inc. (NYSE:CRM) is one of the AI stocks that will go to the moon. On February 18, Salesforce Inc. (NYSE:CRM) entered into an agreement to acquire Momentum. The acquisition of the conversational insights and revenue orchestration platform will extend Agentforce 360 and Slackbot abilities to ingest and analyze unstructured data from third-party voice and video channels. Salesforce Inc (CRM) Expands AI Capabilities With Momentum Acquisition Salesforce plans to merge Momentum’s universal ingestion ...