Salesforce Stock Falls 8.29% During Dreamforce Despite Strong Revenue Guidance
Salesforce's stock price took a hit during its Dreamforce conference, falling 8.29% across five sessions and closing Friday at $237.92. This decline marks the fifth consecutive day of losses for the company.
The company reiterated its existing fiscal-2030 revenue target above $63 billion, which was first announced in February when it reported its Q2 results. Salesforce's shares saw a significant trading volume on Friday, reaching 21.95 million shares, or 1.51 times the five-session average.
During Dreamforce, investors received more detail about Salesforce's product offerings, but little new information about financial ambitions. The company built Koa with NVIDIA Corporation and described it as a reasoning model for enterprise work inside Salesforce's trust boundary. However, no revenue figure was disclosed for Koa.
Salesforce's operating base behind its $63 billion target includes fiscal Q2 revenue of $11.345 billion, up 10.8% year over year, and current RPO of $33.5 billion, up 14% at constant currency. Analysts remain mostly positive about the company, but some have raised concerns about the pace of organic growth.
Wells Fargo's $250 target offers only 5.1% upside from Friday's close, while the 28-analyst mean implies a 15.5% increase. The strongest bull case is contracted demand, as current remaining performance obligations grew 14% at constant currency to $33.5 billion.