Salesforce Stock Drops 21% YTD Amid Macro Pressures and AI Concerns

Salesforce (CRM) stock has dropped 21% YTD, due to macroeconomic pressures, slower business spending, and concerns about growth outlook. Despite this, the company has strong fundamentals and is investing in generative AI, which could boost growth. The stock trades at a forward P/E of 23.3x, below the Technology sector's median. Analysts have a Moderate Buy consensus rating with a 34.01% upside potential.

Salesforce Inc. (NYSE: CRM), a leading cloud-based CRM company, has seen its stock drop by 21% year-to-date (YTD) due to macroeconomic pressures, slower business spending, and concerns about the company's growth outlook [2]. Despite these challenges, Salesforce maintains strong fundamentals and is investing heavily in generative AI, which could potentially boost growth in the future.

Analysts have maintained a Moderate Buy consensus rating for CRM stock, with a 34.01% upside potential, as indicated by the average stock price target of $352.03 [2]. The forward price-to-earnings (P/E) ratio for CRM is currently at 23.3x, which is below the Technology sector's median of 24.34x [2]. This valuation suggests that the stock may be undervalued, presenting a potential buying opportunity for long-term investors.

Salesforce's merger with Informatica, which is currently under review, has also been a topic of interest among analysts. The preliminary proxy statement filed with the SEC on July 3 revealed six potential acquirers, including Salesforce [1]. The company's acquisition of Informatica is seen as a strategic move to strengthen its position in the CRM market.

However, the slow adoption of Salesforce's AI tool, Agentforce, has been a concern. The tool was expected to boost growth but has not yet gained significant momentum [2]. Despite this, Salesforce continues to invest in AI technologies, including generative AI, which could help drive future growth as global AI spending rises.

In conclusion, while Salesforce has faced challenges in the first half of 2025, the company's strong fundamentals and strategic investments in AI present opportunities for long-term investors. The current stock price dip could be seen as a buying opportunity, especially if the company can successfully boost growth through its AI and cloud-focused strategies.

References:
[1] https://finance.yahoo.com/news/salesforce-crm-430-pt-market-223935359.html
[2] https://www.tipranks.com/news/whats-ahead-for-salesforce-nysecrm-as-stock-drops-21-ytd