Salesforce stock dropped 20.7% YTD due to tech pullback and missed revenue estimates

From Nasdaq: 2025-04-10 15:00:00

Salesforce, Inc. (CRM) stock has dropped 20.7% year to date, worse than the Computer – Software industry’s 8.8% decline. Despite underperforming competitors like Microsoft (MSFT), SAP, and ANSYS, Salesforce’s long-term growth potential remains strong.

The recent tech pullback, fears of a tariff war, and a lackluster fourth-quarter fiscal 2025 result have contributed to Salesforce’s slump. While revenue grew 7.5% to $9.99 billion, it missed estimates, with forecasts indicating slower growth for fiscal 2026. Cautious IT spending from enterprise customers is a key concern.

Salesforce maintains its dominance in enterprise CRM, outpacing competitors in market share. Its strategic acquisitions, like Slack and Own Company, expand beyond CRM into collaboration and AI automation. With the introduction of generative AI capabilities, Salesforce is well-positioned to capitalize on rising global AI spending.

Trading at a more attractive valuation with a forward P/E ratio of 23.31x, Salesforce remains a strong hold. Despite short-term challenges, its leadership in enterprise software, AI initiatives, and market position make it a compelling investment. Consider holding onto Salesforce stock for its long-term growth potential.



Read more at Nasdaq: Salesforce Plunges 21% YTD: Is CRM Stock Worth Retaining?