Shares of $CRM have fallen by more than 30% over the past year, and many investors see this as an interesting opportunity. I also personally think the current valuation is attractive, but the question remains whether these companies can recover in the long term or whether AI will gradually replace them.
What do you think — does $CRM have a chance to make a comeback, or has AI already changed the rules of the game?
I had it on my watchlist for about half a year, but I decided not to open a position for one reason — I didn’t like the momentum, which later proved to be true. From a longer-term perspective, though, that momentum doesn’t play a role. It’s not that important whether analysts suspect something or not — their predictions create momentum, and that determines the direction and momentum of the stock price in the short term.
I think AI won’t replace Salesforce, because the costs of switching to an in‑house solution and the risk of halting a company’s operations are untenable for clients. Salesforce also possesses irreplaceable historical data and top‑tier security, so if the coming quarters confirm revenue growth, I see the price back above $250 by the end of 2026.
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Look at analysts' ratings (Barclays, Goldman, Morgan Stanley), which target $280-380. Do you think their price targets/predictions are pulled out of thin air? I think CRM still has plenty to offer. It seems to me that most people are writing these companies off because of AI, which I understand. The strongest will simply remain, and anyone who doesn't keep up with the times has no future. This company is in the top 5 of my largest positions and I believe in the company's future. :)
Good for speculation but not for investing.
Short answer is no. Even just because of the costs, it’s not worth it for companies to handle this internally. Not to mention that if they canceled subscriptions to $CRM now and tried to manage it themselves, the whole company would be stalled for maybe 1–2 months, which would cost the company a huge amount of money. Another thing—yes, AI can program it, even build agents, but it’s about the data that the CRM has accumulated over years. Also security, data storage, and so on. This is just dumb sentiment and investors not understanding the business model. It’s not that the company is worse or in danger. If they manage in the next quarter to get back to growth and revenue really rises by at least 10–11%, I can imagine the price being back over $300 by the end of 2026.