Salesforce shares fell 8% after a soft Q3 revenue forecast due to AI investment delays. Investors pressure AI-driven cloud companies for returns during economic uncertainty. Analysts fear software sector disruption and question incumbents’ ability to monetize AI.

Salesforce’s rapid AI rollout led to Agentforce, automating tasks and boosting margins. Q3 revenue forecast of $10.24-10.29 billion missed analysts’ $10.29 billion estimate. A $20 billion share buyback program increase did little to lift investor spirits.

Analysts at Oppenheimer find Salesforce’s growth outlook uninspiring, citing a tough macro environment. Shares down 24% in 2021, Salesforce aims for growth through acquisitions like the $8 billion purchase of Informatica. Stock valuation lower than Microsoft and Oracle.

Salesforce exceeded Q2 revenue estimates, with potential for growth due to its cheap valuation. J.P. Morgan analysts see positive company commentary and historical low valuation as reasons for optimism.

Read more at Yahoo Finance: Salesforce shares drop as weak revenue view signals delayed AI returns