Why Salesforce (CRM) Stock Is Losing Ground Today

Salesforce (CRM) is retreating 2.5% after the tech giant provided lower-than-expected 2025 revenue guidance and sparked worries about the outlook of its AI agent.

CRM specializes in marketing software to other companies.

A team of software developers gathered around a monitor discussing a new CRM platform.

CRM’s Full-Year Sales Guidance Was Below Analysts’ Average Estimate

CRM provided revenue guidance for its current fiscal year of $40.5 billion to $40.9 billion. The entire range was below analysts’ average estimate of $41.36 billion.

Concerns About the Company’s AI Agents

CRM reported that its AI agent, Agentforce, would only generate “modest” revenue this year before delivering more “meaningful” sales next year. Yahoo Finance noted. The statement sparked worries that Agentforce’s growth is slowing, Yahoo added. However, Salesforce did note that it had closed over 3,000 paid deals for the agent since October.

The Silver Linings of CRM’s Report

The company generated Q4 earnings per share, excluding some items, of $2.78, well above analysts’ average estimate of $2.61. Also importantly, the company’s annual recurring revenue from its data cloud and AI businesses jumped over 100% in Q4 versus the same period a year earlier. Moreover, the firm expects its operating cash flow to surge 10%-11% during its current fiscal year.

The Recent Price Action of CRM Stock

In the last month, the shares have dropped 12%, while they have retreated 8% in the last three months.

While we acknowledge the potential of CRM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.