Analyst Claims AI Impact on Software Misunderstood
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Benzinga
- Market Mispricing: Wedbush analyst Dan Ives argues that investors are misinterpreting the impact of artificial intelligence on enterprise software, leading to over 20% declines in large-cap software stocks like Salesforce and ServiceNow over the past month, indicating exaggerated fears of AI replacing traditional software.
- Customer Stickiness: Ives emphasizes that enterprise customers are deeply embedded in platforms like Salesforce and ServiceNow, with high switching costs and long-term contracts limiting near-term disruption, suggesting that these software moats remain intact.
- AI Monetization Potential: While AI monetization across major software firms is still in its early stages, Ives believes it could ultimately accelerate revenue growth rather than diminish it, reflecting an optimistic outlook for future growth.
- Rebound Expectations: JPMorgan strategists note that the market's pricing of near-term AI disruption appears unrealistic, suggesting that the balance of risks is skewed towards a rebound, indicating that the sell-off in Salesforce and ServiceNow is overdone, and both will be core participants in the AI revolution.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
42 Analyst Rating
31 Buy
10 Hold
1 Sell
Moderate Buy
Current: 185.430
Low
223.00
Averages
326.95
High
405.00
Current: 185.430
Low
223.00
Averages
326.95
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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