Salesforce Stock Is at a 3-Year Low. Should Investors Consider Buying?
Investors' fears are dragging down the stock, but the company's finances are still strong.
Salesforce Stock Is at a 3-Year Low. Should Investors Consider Buying?
Overview
The stock for Marc Benioff's Salesforce (NYSE: CRM) has sunk to a three-year low, but the downward slide might be more about investor fears and sentiment than actual fundamentals. For this reason, investors may want to consider buying the stock.
Last quarter, Salesforce revenue and earnings topped expectations. The company's free cash flow was $6.6 billion. These aren't exactly red flag warnings. So what seems to be the problem?
Details
There are generally two main concerns holding investors back. The first is the strategy around monetizing AI. Salesforce's Agentforce platform is supposed to help companies via AI agents to handle marketing, operations, and sales, and thus far, it seems to be working. However, there's a real fear of cannibalization happening. The same AI agents helping enterprise clients could replace the seat-based subscriptions that Salesforce relies on.
Source
Originally published at www.fool.com.
