Salesforce shares have cratered 34% year-to-date even as the company posted its fifth straight quarterly earnings beat and triple-digit growth in its Agentforce AI platform. Wedbush analyst Dan Ives maintains a $475 price target on the stock, implying roughly 173% upside from the current $173.79 level, while the consensus target sits at $245.16. The selloff has been driven by fears that enterprises are reallocating software budgets toward AI infrastructure, a concern amplified by IBM's July warning that named Salesforce and ServiceNow as potential losers. Despite the drawdown, Salesforce trades at just 13 times forward earnings with 77% gross margins and double-digit revenue growth, and Agentforce annual recurring revenue surged 205% year-over-year to $1.2 billion in the first quarter of fiscal 2027. The broader software sector has also suffered, with ServiceNow down over 31% and Oracle off more than 37% year-to-date.
Salesforce.com Inc
ServiceNow Inc
HubSpot Inc
Oracle Corporation
International Business Machines