Salesforce faces downgrade due to focus on AI over core business

From Yahoo Finance: 2025-04-22 13:44:00

Top AI stocks are making headlines today, with Salesforce Inc (NYSE:CRM) in the mix. OpenAI CEO Sam Altman reveals the cost of politeness to AI models, with millions spent on operational expenses. Despite the expense, politeness sets a tone for AI responses, enhancing interactions. Companies like Microsoft Copilot are prioritizing polite language for better AI outcomes.

OpenAI releases new reasoning models o3 and o4-mini, allowing AI to “think with images” for the first time. These models can analyze and discuss uploaded images, integrating visual information into the reasoning process. The company faces stiff competition in the AI race from giants like Google and Anthropic.

Salesforce (CRM) faces a downgrade to “Underperform” over concerns about neglecting its core business for AI pursuits. D.A. Davidson cites slowing growth across legacy products and recent acquisitions as reasons for the downgrade. Despite its potential, other AI stocks are seen as holding greater promise for higher returns within a shorter timeframe.

Overall, Salesforce ranks 7th among top AI stocks today, but there are other AI stocks showing more promise with potential for significant gains. For investors seeking AI opportunities, exploring undervalued stocks with high upside potential may be a better strategy. Consider looking into the cheapest AI stock currently available for a potentially rewarding investment opportunity.

Read more: Salesforce (CRM) Downgraded to Underperform Over ‘Premature AI Opportunity’ and Core Neglect