AI-driven concerns over software business models rise again; Salesforce plunges nearly 9%, ending six-day winning streak

According to Zhihu Finance, on Thursday, due to renewed concerns over the long-term impact of Artificial Intelligence on the business model of the software industry, Salesforce (CRM.US) shares plunged 8.69% to close at $173.3, ending a six-day winning streak. Although the company's short-term growth outlook remains solid, investor sentiment was clearly weighed down by worries about a restructuring of the industry's valuation logic.

Notably, between April 15 and April 22, Salesforce shares gained approximately 6.87%, significantly outperforming the broad market index which rose just 1.64% during the same period. However, the recent rebound has failed to reverse concerns about the long-term growth path for software stocks, as the AI factor is becoming a major variable suppressing sector valuations.

Analysts point out that although Salesforce is expected to achieve its fastest revenue growth in years, this may not be enough to fully reassure the market. Investors are generally worried that as artificial intelligence tools continue to evolve, the core business models of traditional software enterprises may face disruption—including risks such as weakened subscription model value, profit margin pressure, and intensified competition. These challenges affect not only Salesforce, but also lead the market to reassess the sustainability of growth across the entire software sector.

In terms of ratings, Salesforce currently holds a "Hold" rating with an overall score of 3.15 out of 5. The company’s profitability is rated A+, demonstrating continued robust fundamentals; however, both growth and momentum indicators only received a D+ rating, reflecting the market's lack of confidence in future growth and share price trends.

However, some analysts believe that the current market sentiment may be overly pessimistic. A recent analysis notes that despite a significant pullback in share price, Salesforce’s fundamentals are still improving, new AI-driven products are beginning to support future growth, and the company’s balance sheet leverage is relatively low, leaving room for strategic investment.

The analysis specifically highlights that AI products like Agentforce are showing strong adoption momentum and are expected to help the company's future revenue growth return to the low- to mid-double-digit range, serving as a new round of growth catalyst. The market’s focus is gradually shifting from whether AI will have an impact to whether the company can leverage AI for value re-rating.

From the broader Wall Street perspective, market sentiment has not turned completely negative. Of the 46 analysts covering the stock, 35 give it a "Buy" or higher rating, 10 recommend "Hold," and only one assigns a "Sell" rating, indicating that mainstream institutions remain relatively optimistic about the medium- and long-term prospects.

Still, share price performance continues to reflect cautious market sentiment. Over the past month, Salesforce has declined about 10.4%; so far this year, the stock has dropped about 34.5%, significantly underperforming major technology stocks.