Salesforce has recently been downgraded by Guggenheim to a 'Sell' rating, as the company's AI initiatives face monetization challenges amidst fierce competition. According to deepstreet.io, this downgrade reflects concerns about Salesforce's ability to manage its AI investments against competitors like Microsoft and Amazon.
Salesforce's fiscal 2026 revenue projections of $40.5 billion to $40.9 billion fall short of analysts' expectations of $41.35 billion, as reported by Reuters. This shortfall is attributed to slow adoption of its AI platform, Agentforce, indicating potential hurdles in keeping pace with the rapidly evolving AI marketplace.
In response to these developments, Salesforce's stock has experienced declines, with investor sentiment reflecting unease over the company's current trajectory. Salesforce is currently trading at $267.85, according to Economic Times, as the firm navigates increasing competitive pressures and seeks to sharpen its AI strategies.