Salesforce: Slowing Growth And Declining Market Share Justify The Correction – Initiate Buy


  • Salesforce retains its market-leading position in the CRM market, but its market share has been consistently declining as the RPO growth also decelerates.
  • The slower monetization of Einstein 1 and the lowered FY2025 guidance raise growth concerns, with the recent deep correction notably justified.
  • However, Salesforce’s total RPO of $53.9B continues to offer great insights into its intermediate-term top/ bottom lines as more of its consumers buy into its multi-cloud offerings.
  • It remains well capitalized to survive the near-term elongated sales cycle, thanks to its increasingly rich adj operating margins, FCF generation, and balance sheet.
  • With Salesforce more reasonably valued and the stock well supported at $210s, we are initiating a Buy rating here.

Female track runner lagging behind

John M Lund Photography Inc

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