Catenaa, Wednesday, December 03, 2025- Salesforce shares have never been cheaper, but investors still aren’t buying amid rising fears about AI eroding the company’s growth prospects.
The maker of customer relationship management software reports earnings after the bell, and has recently pointed to better times ahead, forecasting double-digit revenue growth in the coming years.
However, Wall Street isn’t optimistic that the results will do much to alter the cautious narrative surrounding the stock.
Salesforce’s stock price has been hammered by pessimism all year, plunging over 30% in 2025 to make the company the second-worst performer in the Dow Jones Industrial Average and putting it among the 25 worst in the S&P 500 Index.
Meanwhile, shares of software companies that are perceived as AI winners like Microsoft, Oracle and Palantir Technologies are thriving.
The selloff has taken the company’s market valuation to the lowest it has been since Salesforce went public in 2004.
The stock currently trades at less than 19 times estimated earnings over the next 12 months, far below its 10-year average of 47 and less than the S&P 500’s multiple of roughly 22.
While Salesforce’s forecast eased concerns about an imminent slowdown, it didn’t address Wall Street’s primary concern: That offerings from AI-native companies like OpenAI will reduce demand for its services and pricing power.
Salesforce does have AI products of its own, notably Agentforce, which automates some workloads. But investors aren’t expecting to see much of a financial contribution from them yet, which keeps the company’s perceived ability to thrive in the AI era in doubt.
As a sign of Wall Street’s wait-and-see approach, consensus estimates for the company’s earnings and revenue next year haven’t budged in 12 months.
The average analyst price target for Salesforce over the next 12 months is around $325, which implies an almost 40% gain from its $235 price now and puts it among the top 10 components of the S&P 500 Information Technology Index by that measure.
