Salesforce Stock Tumbles Ahead of Earnings Report

Salesforce stock has been struggling this year, down 24.4% from its 52-week high of $269.11 to around $205.69. The company's market cap is approximately $168.5 billion and it trades at a price-to-earnings ratio of 23.83.

The upcoming Q2 earnings report will be crucial in determining the stock's future, as Wall Street models predict adjusted EPS of $3.27 on revenue of $11.13 billion, up 10.7% from last year.

Analysts have been bearish on Salesforce this year, with Morgan Stanley downgrading it to equal-weight from overweight and cutting its price target to $185 from $287 in July.

Salesforce's AI-agent platform, Agentforce, has shown promise, with annualized recurring revenue climbing to $1.2 billion from $800 million last quarter.