Software Stocks Pressured by Anthropic's New AI Functionality
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy CRM?
Source: stocktwits
- Stock Declines: Shares of Salesforce, Snowflake, and Workday hit multi-year lows on Thursday, with Salesforce dropping nearly 3% to $170.85, marking its lowest point since March 2023, and a cumulative 9% decline over four days, indicating market concerns over AI competition.
- AI Functionality Impact: The new features launched by Anthropic on its Cowork platform are perceived as a challenge to existing software products, exacerbating valuation pressures in the software sector, particularly negatively affecting demand for Salesforce and Snowflake, with Snowflake's stock plummeting 13% to $132.24, its lowest since August 2024.
- Buyback Plans and Investor Confidence: Despite the stock price declines, Salesforce announced an accelerated buyback plan of up to $25 billion, and board members each purchased $500,000 in shares last month, reflecting confidence in the company's future.
- Analyst Rating Changes: Citi sharply lowered its price target for Workday from $247 to $148, while Rothschild reduced it from $270 to $210, highlighting concerns over the company's decelerating sales trends and uncertainty regarding future strategy following the CEO change.
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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: 170.850
Low
223.00
Averages
326.40
High
405.00
Current: 170.850
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a customer relationship management (CRM) technology company. Its artificial intelligence (AI) powered Agentforce 360 Platform offers sales, service, marketing, commerce, collaboration, data management, integration, analytics, and information technology (IT) service solutions. It enables customers to build and deploy digital labor for employees and customers, leveraging autonomous AI agents across business functions. Its service offerings include Agentforce Sales, Agentforce Service, Agentforce 360 Platform, Slack and Others. The Agentforce Sales provides sales capabilities and tools built for organizations across prospecting, sales engagement, team collaboration, sales analytics and AI, sales programs, sales performance, partner management, and revenue and orders. The Agentforce Service provides field service solutions that enable companies to connect service agents, dispatchers and mobile employees through platform to schedule, dispatch and manage jobs.
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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