The Financial Post reports in its Thursday, Dec. 4, edition that Salesforce shares are at a record low, but investors remain hesitant due to concerns that artificial intelligence may hinder the company's growth. A Bloomberg dispatch to the Post reports that
Salesforce forecasts double-digit revenue growth ahead, but Wall Street remains cautious about the stock. Clearbridge Investments analyst Hilary Frisch says, "We need a change in sentiment for investors to take a look, and that will be driven by stability and an improvement in topline growth." Salesforce's stock price has been hammered by pessimism all year, plunging 30 per cent in 2025 to make the company the second-worst performer in the Dow Jones Industrial Average and putting it among the 25 worst in the S&P 500 index. Meanwhile, shares of software companies that are perceived AI winners such as Microsoft, Oracle and Palantir Technologies are thriving.
The sell-off has taken Salesforce's market valuation to the lowest it has been since it went public in 2004. The stock currently trades at less than 19 times estimated earnings over the next 12 months, far below its 10-year average of 47 and less than the S&P 500's multiple of about 22.
© 2025 Canjex Publishing Ltd. All rights reserved.