Salesforce stock (NYSE: CRM) has seen its price battle bearish sentiment since the start of 2025, down by 17% as the first half of the year draws to a close. After a strong end to 2024, this may have caught some by surprise.
The past year has been marked by strategic acquisitions, robust financial performance, and a concerted effort to solidify its position at the forefront of artificial intelligence, all while navigating market volatility and investor expectations. While the dominant narrative surrounding Salesforce remains largely optimistic, a closer look reveals both significant opportunities and potential challenges for the company’s future.
YOUR CAPITAL IS AT RISK
Salesforce Share Price Targets
Analysts have set a 12-month price target for Salesforce with an average expectation of $353.19, ranging from a high of $440.00 to a low of $225.00.
The current consensus average target suggests a potential increase of ~30% from the most recent trading price.
Our View: You would be wise to consider the views of the analyst community in conjunction with the fundamentals surrounding the company to properly determine a value for the stock that you feel is appropriate.
At the upper end of analysts estimates it would be easy to get carried away with the potential gains on show, but the flipside is that these targets can shift within the blink of an eye and that the view of analysts is very dynamic.
If you are considering swing trading, or day trading Salesforce shares that is a separate consideration, but for those planning for the long haul, fundamental analysis is king.
Salesforce – The Basics Driving The Business
Salesforce stands as a bellwether of the enterprise software landscape, a company constantly evolving to meet the demands of a data-driven and increasingly AI-powered world. From its humble beginnings as a pioneer of cloud-based customer relationship management (CRM), Salesforce has expanded its suite of services to encompass sales, service, marketing, commerce, and analytics, becoming an indispensable tool for businesses of all sizes.
Salesforce’s core business revolves around providing cloud-based software solutions that help companies manage their customer interactions and streamline their business processes. Its flagship CRM platform enables businesses to track customer data, automate sales processes, provide customer service, and execute marketing campaigns.
Beyond CRM, Salesforce offers a range of other products, including Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, and Tableau for data analytics. These offerings are designed to work seamlessly together, providing businesses with a comprehensive view of their customers and operations. Salesforce’s ecosystem is further strengthened by its AppExchange, a marketplace where developers can create and sell applications that integrate with the Salesforce platform. This vibrant ecosystem fosters innovation and allows customers to customize the platform to meet their specific needs.
A defining characteristic of Salesforce’s recent strategy is its aggressive push into artificial intelligence. The launch of Agentforce in September 2024, a platform that allows users to create autonomous agents for various business functions, marked a significant step in this direction. The acquisition of Tenyx, an AI-driven voice agent company, further reinforced Salesforce’s commitment to enhancing its AI capabilities.
The company’s Data Cloud and AI products have already generated over $1 billion in annual recurring revenue, a testament to the strong market demand for AI-powered solutions. Furthermore, the strategic partnership with Workday to develop an AI-powered employee service agent highlights Salesforce’s collaborative approach to AI innovation, leveraging its Agentforce Platform and Einstein AI alongside Workday’s expertise.
