CRM Stock Hits 52-Week Low: Why Wall Street, Retail Traders Are Unfazed

A broader AI-driven selloff in software stocks pressured firms like Salesforce, ServiceNow, Microsoft, Snowflake, and Palantir.

• Salesforce fell 4.4% to $185 on Wednesday, marking its lowest close since March 2023.
• Despite the 30% year-to-date decline, Morgan Stanley said Salesforce has “triple-digit potential.”
• Koyfin data show an average price target of $327.49, implying 77% upside from the stock's last close. 

Salesforce, Inc. (CRM) shares slid to a fresh 52-week low on Wednesday as the selloff in software stocks deepened, but the drop has done little to shake confidence among Wall Street analysts and retail traders who view the move as disconnected from the company’s long-term fundamentals.

CRM stock finished 4.4% lower at $185 on Wednesday, marking its second straight decline and its lowest close since March 2023. 

Software Selloff Deepens Amid AI Threats

Salesforce’s decline came alongside renewed weakness across software and large-cap technology stocks. ServiceNow fell about 6% on Wednesday, while Microsoft dropped more than 2%, Snowflake slid over 2%, and Palantir Technologies declined nearly 3%.

Investor concerns have intensified that advances in AI could weigh on traditional subscription-based software models, following Altruist’s launch this week of AI-enabled tax-planning features. Last week, Anthropic launched new plug-ins for its Claude Cowork agent to automate tasks across legal, sales, marketing, and data analysis.

Morgan Stanley Sees ‘Triple-Digit Potential’

Salesforce is now down 30% year-to-date, underperforming the broader market. Over the same period, the S&P 500 is up 1.4%, while the Nasdaq Composite is down 17%.

Still, Morgan Stanley called the recent move in software and services stocks “broad and largely indiscriminate, with limited differentiation across business models or fundamentals.” In a screen of companies that were “unfairly sold off,” Morgan Stanley included Salesforce among names with “triple-digit potential,” citing a widening gap between companies able to demonstrate measurable AI return on investment and those that cannot, according to a report by MarketWatch.

The brokerage said market focus has shifted toward proof of margin expansion and quantifiable AI impact, noting that across its screened group, it sees a median 62% upside to price targets.

Wedbush Sees AI As Tailwind For Salesforce

Bullish sentiment was also reiterated by Dan Ives, managing director at Wedbush Securities, who said enterprise platforms such as Salesforce and ServiceNow will play instrumental roles in enabling AI integration across businesses. Ives recently re-added Salesforce to his AI-focused watchlist, arguing that AI adoption is likely to expand enterprise software spending over the coming years.

Wall Street View On CRM

According to Koyfin data ahead of Salesforce’s Feb. 25 earnings release, the company is expected to report fourth-quarter (Q4) revenue of $11.18 billion, up from $10.26 billion in the prior quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) are forecast at $4.16 billion, compared with $4.1 billion previously, while earnings before interest and taxes (EBIT) are projected to increase to $3.82 billion from $3.64 billion.

GAAP earnings per share are expected to come in at $1.57, down from $2.19 in the prior period, while adjusted earnings per share are seen at $3.05, compared with $3.25 previously.

Meanwhile, Salesforce is covered by 58 analysts on Koyfin, of whom 8 rate the stock ‘Strong Buy’, 37 rate it ‘Buy’, 12 rate it ‘Hold’, none rate it ‘Sell’, and 1 rate it ‘Strong Sell’. The 12-month average price target is $327.49, implying an upside of 77% from the last close. The highest price target of $475 shows an upside of 157% from the stock’s last close, while the lowest target of $223 implies an upside of about 20%.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment toward CRM has remained in ‘extremely bullish’ territory over the past week, climbing to a three-week high on Wednesday amid ‘extremely high’ message volume. Message activity has also surged by over 1,600% over the past month.

Several users called the selloff a potential buying opportunity. One user pointed to the sharp decline, writing that the stock was “down 75 points in one month” and had hit a new 52-week low, adding that a “mean reversion bounce” could be next.

Another user compared the move to past AI-driven selloffs, saying investors had “seen the FUD with Google last year” and suggesting the same now applies to Salesforce.

A third trader said they added to their position in CRM after the close, saying that they had bought 300 shares after hours and expected earnings to be “really good.”

A fourth user said, “Imagine missing the opportunity to buy a company at 2019 prices when its profits have increased sixfold.”

For updates and corrections, email newsroom[at]stocktwits[dot]com.<