1 hr ago
Salesforce Stock Falls Despite $63 Billion Fiscal 2030 Target
Salesforce is a company that sells business software.
It says its sales could reach $63 billion by fiscal 2030.
That goal is higher than the average prediction from analysts.
UBS raised its price target for Salesforce but still said investors should remain Neutral.
The stock nevertheless fell for a fourth straight session.
Investors are unsure how artificial intelligence will affect Salesforce’s business.
They are also watching whether Salesforce’s new AIforce product will be affordable and widely used.
A recent outage during the Dreamforce conference created additional concerns about reliability.
Higher US Treasury yields have also made many technology stocks less attractive to investors.
Salesforce set a $63 billion revenue target for fiscal 2030, above the $61.4 billion analyst average.
UBS raised its Salesforce price target to $260 from $240 but kept a Neutral rating.
Salesforce shares fell 2% to $237.92, extending losses to more than 8% across four sessions.
Investors remain concerned about AI competition, pricing, product adoption, execution and technology-stock valuations.
Salesforce highlighted its Anthropic partnership, while a recent Dreamforce outage raised questions about platform reliability.
- Who
- Salesforce, its investors, UBS and analysts.
- What
- Salesforce announced a $63 billion fiscal 2030 revenue target while its shares continued to decline.
- Where
- The announcement came during Salesforce’s annual Dreamforce conference; the company’s shares traded at $237.92.
- When
- The outlook was announced during Salesforce’s annual conference on Wednesday; the shares fell for four consecutive sessions afterward.
- Why
- Investors are evaluating Salesforce’s ability to grow amid AI competition, pricing and adoption concerns, execution issues, and higher technology-stock valuations.
Growth Case
Investor Concerns
Fiscal 2030 outlook
Growth Case
Salesforce’s $63 billion revenue target exceeds the $61.4 billion average analyst estimate, suggesting the company expects to sustain growth.
Investor Concerns
UBS lowered its fiscal 2028 revenue-growth estimate, saying progress toward the target could be more back-end loaded.
Artificial intelligence
Growth Case
Salesforce says it is incorporating AI into its platform, and UBS sees AIforce potentially increasing platform usage.
Investor Concerns
Investors worry that emerging AI tools could compete with or weaken Salesforce’s existing software business.
AIforce adoption
Growth Case
The new offering could expand Salesforce usage and support future revenue growth.
Investor Concerns
UBS said premium pricing could limit AIforce adoption in the near term.
Key facts
- Fiscal 2030 revenue target
- $63 billion
- Analyst average estimate
- $61.4 billion
- UBS price target
- Raised to $260 from $240
- UBS rating
- Neutral
- Latest share move
- Down 2% to $237.92
- Four-session performance
- Down more than 8%
- Year-to-date performance
- Down 5.4%
- Recovery from June 22 low
- Up 67%
Quotes
UBS analyst
Analyst at UBS commenting on customer discussions, AIforce monetization, and the brokerage’s rating.
“We spent two days at Salesforce’s big Dreamforce conference in SF, talking to customers about the new AIforce offering and to Salesforce management about how it will be monetized. We are Neutral-rated.”
livemint.com
Sources
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