Salesforce Shares Decline After Analyst Downgrade, Focus on AI Growth

Salesforce has recently faced stock pressure following an analyst downgrade that criticized its heavy investment in AI, particularly the Agentforce product, viewing it as premature and potentially detrimental to its core business and past acquisitions. Despite these concerns, other analysts remain bullish, emphasizing Agentforce's potential to drive incremental growth and the rapid adoption of Salesforce's Data Cloud, which is seen as a leading indicator for successful AI applications. The deployment of Agentforce typically involves a six- to seven-month cycle, with initial use cases focused on automating customer service tasks such as shipment tracking and product information retrieval. Bulls argue that Salesforce’s digital, cloud-based business model insulates it from current macroeconomic headwinds like tariffs and supply chain disruptions, positioning it favorably for long-term growth. While the ROI of Agentforce is still evolving, early feedback suggests reasonable pricing and growing adoption among customers. Overall, Salesforce's strategic focus on AI and data may introduce short-term volatility but is viewed by some as a sound move for sustainable long-term value.