Salesforce (CRM) is currently trading at 17.9 times forward 12-month earnings, over 50% below its 2024 peak and 30% lower than the tech sector average. The company’s value dropped significantly despite a 2,300% increase in stock value over the past 20 years, compared to the tech sector’s 1,100% rise. Salesforce is set to report its first-quarter financial results on May 27, amid growing concerns that artificial intelligence (AI) advancements might threaten its business software offerings.
Salesforce projects annual revenue of $50.32 billion for FY24, rising from $41.52 billion last year, and aims for $63 billion by FY30, bolstered by its Agentforce AI tool, which generated $800 million in annual recurring revenue last year, up 169% year-over-year. Despite these growth trajectories, CRM’s stock has declined by 20% over the past five years, while the tech sector overall has surged by 115%.
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