Salesforce CEO Marc Benioff Warns of AI Threats as Stock Drops 14%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: CNBC
- Market Decline: The WisdomTree Cloud Computing Fund has dropped over 8% this year, with major software firms like Salesforce, ServiceNow, and Adobe seeing stock declines exceeding 14%, indicating heightened market concerns that could trigger a wave of acquisitions.
- AI Competitive Pressure: The launch of Anthropic's AI tool Cowork aimed at enterprise customers has shaken investor confidence in software vendors, raising fears that AI could replace critical functions traditionally handled by software, prompting mid-sized firms to seek financing options to navigate these challenges.
- Acquisition Opportunities: Thoma Bravo co-founder Orlando Bravo highlighted that now presents incredible buying opportunities, particularly for companies developing AI solutions that integrate with existing systems, reflecting strong market demand for AI integration.
- Strategic Adjustments: Analyst Rishi Jaluria noted that the recent pullback in software stocks may force certain companies to explore strategic alternatives, especially those lacking effective AI integration, suggesting that future deals will need compelling AI angles to attract investor interest.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on DOCU
Wall Street analysts forecast DOCU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOCU is 80.23 USD with a low forecast of 70.00 USD and a high forecast of 105.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
3 Buy
13 Hold
0 Sell
Hold
Current: 56.215
Low
70.00
Averages
80.23
High
105.00
Current: 56.215
Low
70.00
Averages
80.23
High
105.00
About DOCU
DocuSign, Inc. provides intelligent agreement management (IAM) platform an eSignature solution, and contract lifecycle management (CLM) solution - allow organizations to increase productivity, accelerate contract review cycles, and transform agreement data into insights and actions. The Company’s IAM platform automates agreement workflows, uncovers actionable insights, and leverages artificial intelligence (AI) capabilities, enabling organizations to create, commit, and manage agreements virtually. Its products include eSignature, CLM, IAM Apps, and Add-on Products. Its Add-on Products include Payments to collect payments along with signed agreements; Identity and standards-based signature for enhanced signer-identification and signatures with digital certification; Notary for remote online notarization; Monitor for advanced analytics; Gen for Salesforce for automated agreement generation within Salesforce, among others.
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.
Docusign Launches Intelligent Agreement Management Platform, 150% Customer Growth
- Significant Customer Growth: Docusign's Intelligent Agreement Management (IAM) platform attracted over 25,000 businesses in just six months, marking a 150% increase, indicating strong market demand and potential for stock price recovery.
- Economic Value Unlocked: A Deloitte study reveals that businesses lose over $2 trillion annually due to inefficient contract management, and IAM aims to address this by simplifying processes through AI technology, enhancing efficiency and economic value for enterprises.
- Profitability Improvement: Docusign reported a GAAP profit of $218 million in Q3 of fiscal 2026, a stark contrast to a $102 million loss in the same period of fiscal 2022, showcasing the company's successful transformation in cost control and profitability enhancement.
- Attractive Stock Valuation: Docusign's price-to-sales ratio stands at 3.8, a 70% discount from its long-term average of 12.5, and while its price-to-earnings ratio is 39.6, the recent 33% growth in adjusted earnings suggests the stock remains attractive for long-term investment.
Continue Reading
Salesforce CEO Marc Benioff Warns of AI Threats as Stock Drops 14%
- Market Decline: The WisdomTree Cloud Computing Fund has dropped over 8% this year, with major software firms like Salesforce, ServiceNow, and Adobe seeing stock declines exceeding 14%, indicating heightened market concerns that could trigger a wave of acquisitions.
- AI Competitive Pressure: The launch of Anthropic's AI tool Cowork aimed at enterprise customers has shaken investor confidence in software vendors, raising fears that AI could replace critical functions traditionally handled by software, prompting mid-sized firms to seek financing options to navigate these challenges.
- Acquisition Opportunities: Thoma Bravo co-founder Orlando Bravo highlighted that now presents incredible buying opportunities, particularly for companies developing AI solutions that integrate with existing systems, reflecting strong market demand for AI integration.
- Strategic Adjustments: Analyst Rishi Jaluria noted that the recent pullback in software stocks may force certain companies to explore strategic alternatives, especially those lacking effective AI integration, suggesting that future deals will need compelling AI angles to attract investor interest.
Continue Reading