Analyst Claims AI Impact Misread by Wall Street
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy CRM?
Source: Yahoo Finance
- Market Misjudgment: Wedbush analyst Dan Ives highlighted that Wall Street is seriously misreading the impact of AI on enterprise software, suggesting that investors are pricing in an unrealistic scenario that overlooks the durability and high switching costs of traditional software platforms.
- Software Stock Pullback: Shares of Salesforce and ServiceNow have both dropped over 20% in the past month, reflecting market concerns that generative AI could automate high-value enterprise workflows, leading to a sharp sell-off in large-cap software stocks.
- Customer Stickiness: Ives emphasized that enterprise customers are deeply embedded in platforms like Salesforce and ServiceNow, with long-term contracts and high switching costs limiting near-term disruption, indicating that these companies will remain core participants in the AI revolution.
- Future Growth Potential: Despite the current pessimistic market sentiment, Ives believes that AI monetization is still in its early stages and could ultimately accelerate revenue growth rather than diminish it, showcasing long-term confidence in these software firms.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 189.720
Low
223.00
Averages
326.40
High
405.00
Current: 189.720
Low
223.00
Averages
326.40
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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