Salesforce stock price is stuck in a technical bear market, moving by ~34% from its highest point in 2025. It has continued to underperform the broader market as the S&P 500 and Nasdaq 100 indices moved to a record high. So, is this software giant a good buy today?
Salesforce stock crashes amid AI disruption
CRM stock price has been in a strong downward trajectory in the past 12 months as investors remain concerned about the company’s growth trajectory as the artificial intelligence boom continues.
A major concern is that the company’s growth will slow as AI tools start replacing some of the solutions made by Salesforce. At the same time, there are concerns that its AI tools are still in the early stages of adoption.
At the same time, market participants are concerned that the company is now focusing on growth through acquisitions, a strategy it has used for years. Salesforce bought Informatica in 2025 for $8 billion. It also bought more companies like Bluebirds, Convergence.ai, Apromore, Spindle AI, and Doti.
In the past, the company acquired companies like Slack, Mulesoft, and Tableau. In some instances, companies grow by acquisitions when their core businesses are slowing down.
On the positive side, Wall Street analysts are bullish on Salesforce, with a Barclays analyst boosting his forecast from $330 to $338 on Monday.
Goldman Sachs has a buy rating and a target of $330x while RBC analysts boosted the forecast from $250 to $290. The average estimate among 44 analysts is that the stock should jump by 35% to $326.
Salesforce earnings to shed light on its growth
Looking ahead, the next key catalyst for the Salesforce stock price will be its earnings, which will come out on March 4. These numbers will provide more information on whether the company continued its growth in the last quarter of the year.
Data compiled by Yahoo Finance shows that the average estimate is that its revenue will come in at $11.18 billion, up by 11.90% from the same period in 2024. Its earnings-per-share (EPS) is expected to come in at $3.05, up from the previous $2.78.
Analysts expect Salesforce’s annual revenue to jump to $41.48 billion, up by 9.47% YoY, followed by $46 billion. Some of this growth will be because of its recent acquisitions.
On the positive side, there are signs that the CRM stock is a bargain. Data compiled by Seeking Alpha shows that it has a forward PE ratio of 22, much lower than the five-year average of 35 and the sector median of 25.
Salesforce share price technical analysis
The weekly chart shows that the CRM stock price has crashed from a high of $367 in December 2024 to the current $241. It has moved below the 50% Fibonacci Retracement level at $246.
The stock has moved below the 50-week and 200-week Weighted Moving Averages (WMA), a sign that bears are in control for now
It has also formed a bearish flag pattern, which is made up of a vertical line and a descending channel. This pattern normally leads to a strong bearish breakout.
Therefore, the most likely scenario is where the stock drops to the lower side of the channel at $225. A move below that support will point to more downside, potentially to the key support level at $200.
On the other hand, a move above the upper side of the channel will point to more upside and invalidate the bearish outlook.
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