Salesforce Stock Tumbles Amid AI Growth Concerns

Salesforce (CRM) shares have dropped 3.9% in value. Analysts are attributing this decline to concerns about the company's AI push and its ability to translate into long-term growth.

Despite posting solid quarterly results earlier this year, Salesforce faces skepticism from investors who question whether the company's AI efforts will soon pay off in terms of revenue growth.

In its most recent quarter, Salesforce reported $11.1 billion in revenue, a 13% increase from the same period last year. The company also raised its full-year revenue outlook to between $45.9 and $46.2 billion.

However, some analysts have expressed concerns about the pace of growth for Agentforce, one of Salesforce's AI-powered tools. Weak customer feedback on this product has led at least one analyst to downgrade their rating for the company.