Salesforce Inc (NYSE:CRM) shares are down on Wednesday, reflecting a broader trend in the market as technology stocks face pressure. The move comes as the Technology sector is down approximately 1.9%, contributing to the decline.
- Salesforce shares are under pressure. Why is CRM stock trading lower?
Salesforce Tracks Market Downturn; Nasdaq Falls
Salesforce’s stock is currently trading at $237.81, down 1.35% during the regular session. This decline aligns with a broader market sell-off, with the Nasdaq down 1.54% and the S&P 500 down 0.81%, indicating that the stock is moving in tandem with market trends. The technology sector’s struggles today are evident, as many stocks are experiencing similar downward pressure.
Salesforce received positive analyst coverage this week with Barclays maintaining an Overweight and raising its price target from $330 to $338. The analyst update came as the company announced the general availability of Slackbot, a deeply personal agent for work, built directly into Slack.
Salesforce Struggles With Slowing Demand Despite AI Push
Salesforce has been under pressure this year, with the stock down 10% as the company works through a slowdown in sales. The company is pouring resources into AI, especially through its Agentforce platform and its Data 360 product, which pulls together data from across Salesforce and other cloud systems.
Early AI revenue is growing, reaching $540 million last quarter, but broader enterprise spending is tightening as customers consolidate vendors and push back on rising SaaS prices.
At the same time, Salesforce’s core CRM tools are increasingly overlapping with larger productivity platforms, adding competitive pressure. Sales Cloud growth has also weakened, slowing to 8.4% year‑over‑year from 9.5% in the prior quarter and well below the 11.2% growth seen a year earlier, another sign of strain in the business.
Salesforce’s Bearish Trend: Below SMA and 26.41% Yearly Decline
Salesforce is trading well 8.4% below its 20‑day SMA and 4.2% under the 100‑day, which points to clear short to medium-term weakness. The stock has also slid roughly 25.88% over the past year, leaving it much closer to its 52‑week lows than its highs.
The RSI sits at 35.35, which keeps it in neutral territory, but the MACD has dipped below its signal line, showing bearish momentum. Taken together, the indicators paint a picture of mixed momentum for the stock.
- Key Resistance: $267.50
- Key Support: $222.00
Salesforce’s Mixed Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Salesforce, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 10.51/100) — Stock is underperforming the broader market.
- Quality: Strong (Score: 78.62/100) — Balance sheet remains healthy.
- Value: Risk (Score: 5.87/100) — Trading at a steep premium relative to peers.
- Growth: Neutral (Score: 66.88/100) — Moderate growth potential.
The Verdict: Salesforce’s Benzinga Edge signal reveals a mixed outlook. While the Quality score indicates a healthy balance sheet, the low Momentum score suggests that the stock is struggling to gain traction in the current market environment.
CRM Price Action: Salesforce shares were down 1.21% at $238.15 at the time of publication on Wednesday, according to Benzinga Pro.
Image: JackPress/Shutterstock
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