Salesforce (CRM) is having a tough year in 2025 so far. The stock is down 21% year-to-date and falls behind competitors like Microsoft (MSFT) and SAP (SAP). The drop might be due to macroeconomic pressures, slower business spending, and concerns about Salesforce’s growth outlook.
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Adding to the concern is the slow adoption of Agentforce, Salesforce’s AI tool, which was supposed to boost growth but has not gained impressive momentum yet.
Strong Fundamentals and AI Signal Rebound for CRM
Meanwhile, Salesforce’s fundamentals remain strong. Also, it holds the largest CRM market share globally and has strong ties across enterprise tools like Slack and Data Cloud. Further, the company is investing heavily in generative AI, which could help boost growth as global AI spending rises.
Valuation-wise, CRM now trades at a forward P/E of 23.3x, below the Technology sector’s median of 24.34. For long-term investors, the current share price dip could be a buying opportunity, especially if the company boosts growth through AI and cloud-focused strategies.
Is CRM a Buy, Hold, or Sell?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 33 Buys, nine Holds, and two Sells assigned in the last three months. At $352.03, the average Salesforce stock price target implies a 34.01% upside potential.
