Salesforce Stock Sell-Off: Wall Street Reacts to AI Agent Concerns

Salesforce Inc. (CRM) shares took a hit on Wednesday after the company's full-year outlook fell short of expectations, with investors expressing concerns about the potential impact of its AI agent, Agentforce, on earnings. The stock fell more than 5% in after-hours trading following the earnings report, which showed a modest contribution from Agentforce in the near term.



Salesforce's Chief Financial Officer, Amy Weaver, acknowledged that the adoption cycle for Agentforce is still early, and the company is assuming a modest contribution to revenue in fiscal '26. She also noted that the stronger U.S. dollar and weakness in the professional-services segment weighed on the company's forecast.



Analysts have raised concerns about the costs of development, the eventual payoff, and the implications of China-based AI app DeepSeek, which purportedly offers a lower-cost form of the technology. Others have questioned the extent to which Agentforce would compete with humans or put them out of work.

Despite the concerns, some analysts remain bullish on Salesforce's long-term prospects. Clayton Allison, portfolio manager at Prime Capital Financial, noted that a positive read from Salesforce could reassure investors about the potential of AI to drive growth and efficiency more broadly. Eric Clark, portfolio manager at Accuvest Global Advisors Inc., expects the stock to top US$500 over the next couple of years, citing the potential of Agentforce and the company's stable and predictable growth.



Salesforce's shares have seen a significant drop following the guidance, but some analysts remain bullish on the stock's long-term prospects. The company's recent guidance has created a mixed perception among investors, with some optimistic about the potential of Agentforce and the company's AI initiatives, while others are more cautious about the potential impact on earnings.

In conclusion, Salesforce's recent earnings report and guidance have sparked a mixed reaction among investors, with concerns about the company's AI agent, Agentforce, driving the stock sell-off. While some analysts remain bullish on the company's long-term prospects, others are more cautious about the potential impact on earnings. Investors should closely monitor the adoption and performance of Agentforce, as well as the company's overall financial health, to evaluate the success and potential of its AI initiatives.