Salesforce: Risks Losing Market Share As Gen AI Disrupts


  • Gen AI is a double-edged technology, as in addition to opportunities, it can also present challenges to enterprise software plays like Salesforce.
  • Thus, despite embedding artificial intelligence into its platforms, revenue growth continues to decelerate.
  • This is the reason for my cautious instance despite this being a cash-generating machine.
  • I support my position through industry-level research.
  • Thus, it is better to wait for the company to quantify a dollar-based pipeline for AI before investing amid all the hype.
Aerial tram open to public at Salesforce Transit Center in downtown San Francisco

Sundry Photography/iStock Editorial via Getty Images

Since I last covered Salesforce (NYSE:CRM) in May last year in the article entitled “Key AI Additions, But Probably Too Late To Get Excited”, it has gained about 10%, including the recent 20% plunge as charted below.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

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