:max_bytes(150000):strip_icc()/GettyImages-2230840977-9cfb0cc645e84ffca033fd9abcecd024.jpg "Salesforce Stock Climbs After Earnings. Wedbush Calls It ‘Long-Term Winner’ of the AI Boom")
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Key Takeaways
- Salesforce shares rose Thursday after the software giant posted strong results for the fourth quarter, though its full-year revenue outlook missed estimates.
- The soft outlook led some analysts to lower their price targets, though most remain bullish on the shares.
Is Salesforce’s stock ready for a rebound after some signs of AI-driven gains?
The shares climbed 4% to close just under $200 Thursday, making Salesforce (CRM) the best-performing stock in the Dow Jones Industrial Average, on a day when the broader tech sector declined.
The software giant posted fourth-quarter sales and profits after the closing bell Wednesday that topped analysts’ estimates, thanks in part to growing demand for its AI offerings, though its revenue outlook for the full year came up short.
Why This Is Significant
The results could help improve sentiment surrounding shares of Salesforce, which have been pressured in recent weeks along with other software stocks amid worries about AI disruption.
Wedbush, which called the recent sell-off in software stocks “overblown,” said Thursday it views Salesforce as a “long-term winner” of the AI boom, though the firm lowered its price target to $325 from $375 following the results.
Goldman Sachs and Deutsche Bank, which both have “buy” ratings for the shares, also trimmed their targets to $281 and $255, respectively. Both would still suggest significant upside for the stock.
Even with Thursday’s gains, Salesforce shares have lost roughly one-quarter of their value since the start of the year.
