Salesforce's AI Ambitions and Cloudy Q3 Earnings Outlook

# Salesforce Stock Faces Volatility Ahead of September Earnings: AI Expansion and Market Concerns

Explore the latest developments in Salesforce (CRM) as the tech giant navigates challenging market conditions. This episode analyzes CRM's recent 3% drop on unusually high trading volume, examining how the company's AI initiatives like Einstein Agentforce and the Bluebirds acquisition are reshaping its competitive position. We break down Wall Street's divided outlook—from bullish $430 price targets to bearish $200 projections—and what it means for investors. With Salesforce testing 52-week lows despite 7% revenue growth, discover the technical indicators, partnership expansions, and AI integration strategies that could determine whether this enterprise software leader can rebound. Perfect timing as we approach their critical September earnings announcement that could set the trajectory for this $238 billion market cap company.

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Episode Transcript

Speaker 1 (00:00):
Salesforce, traded under the name CRM, finished yesterday at two
hundred forty one United States dollars and ninety cents, retreating
by over three percent on a spike in trading volume
that was nearly seventy percent higher than normal. This surge
in activity pushed the stock into the top third of
all actively traded equities for the session, suggesting that investors

(00:20):
are closely watching this name ahead of its upcoming quarterly
earnings announcement scheduled for early September. The persistent pressure on
the stock price is partly reflective of broader concerns about
advances in artificial intelligence agents and shifting competitive dynamics. Revenue
growth remains robust, climbing more than seven percent year after year,

(00:41):
propelled by steady subscription and service sales, but profits are
expanding at a more measured pace. Analysts hold mixed views.
Recent target price updates range from two hundred to over
four hundred United States dollars, with most settling on moderate
buy or hold recommendations. Wells Fargo raised its own out
look to two hundred seventy five, while D. A. Davidson

(01:03):
remains pessimistic at two hundred. Still some like JMP, Securities
and Citizens have championed figures as high as four hundred thirty.
Recent news include Salesforce revealing its Einstein artificial intelligence driven
Agent Force labor platform, intensifying its push into digital automation.

(01:23):
The company also broadened its alliance with Sprout Social, integrating
customer engagement data from platforms such as Instagram and LinkedIn,
aiming to reinforce its standing across social media analytics. Meanwhile,
Salesforce's recent acquisition of artificial intelligence prospecting firm Bluebirds has
met with a divided reception. Some see opportunity, others question

(01:47):
if this is enough to counter disruptive competition. Technically, the
equity is testing its fifty two week low, creating just
above two hundred and thirty, and technical indicators point to
bearish momentum, with the market showing increased demand for downside
protection through put options. Market capitalization now stands at roughly
two hundred and thirty eight billion United States dollars, a

(02:09):
sharp decline from peak valuations seem last year. Despite these challenges,
analysts broadly expect fiscal year earnings per share to reach
eight dollars and fifty four cents up a bit from
the prior year, and most maintain it cautiously optimistic stance
contingent on sales Force's ability to realize its artificial intelligence aspirations.

(02:31):
With volatility elevated, an investor sentiment mixed. The next few
weeks and the approaching earnings report could prove decisive for
the company's stock trajectory.