Salesforce Plummets to New Low Despite Morgan Stanley's Triple-Digit Potential Prediction

Salesforce shares plummeted to a new 52-week low on Wednesday, dropping 4.4% to $185.

The selloff in software stocks deepened as concerns intensified that advances in AI could weigh on traditional subscription-based models.

Morgan Stanley views the move as 'broad and largely indiscriminate', calling Salesforce one of eight companies with 'triple-digit potential' due to a widening gap between those demonstrating measurable AI return on investment and those that cannot.

The brokerage sees a median 62% upside to price targets across its screened group, with an average target of $327.49 implying 77% upside from the stock's last close.