NEW YORK, Feb 4, 2026, 07:05 (EST) — Premarket
Salesforce shares dropped 6.9% to close at $196.38 on Tuesday, drawing renewed attention to the cloud-software giant ahead of Wednesday’s U.S. trading session. (Reuters)
The focus has shifted from the price action to the underlying cause. Traders are zeroing in on a straightforward concern: “AI agents”—software designed to perform tasks for users—might undercut the value subscription software commands, threatening growth projections down the line.
AI developer Anthropic rolled out plug-ins for its Claude Cowork agent, enabling connections to tools that automate tasks in legal, sales, marketing, and data analysis. The announcement rattled U.S. and European software and data-analytics stocks, which tumbled sharply Tuesday. The S&P 500 slid 0.84%, while the Nasdaq dropped 1.43%. “Sometimes the market just shoots first and asks questions later,” said Mike Archibald, a portfolio manager at AGF Investments. (Reuters)
Salesforce’s core subscription model is under strain. The majority of clients continue to pay per user seat, a setup Wall Street values for its steady renewal revenue. But if AI tools lead to fewer seats being sold or more aggressive price negotiations, even a slight change could disrupt valuation calculations.
JPMorgan analyst Toby Ogg described investor appetite as “very low,” highlighting a focus on longer-term growth over the upcoming quarter. He added, “The sector isn’t just guilty until proven innocent but is now being sentenced before trial.” Meanwhile, Quilter Cheviot’s Ben Barringer noted that investors are largely steering clear of the software market altogether. (Reuters)
Broader markets showed more stability early Wednesday, yet the software sector remains battered. The S&P 500 software and services index has plunged over 12% in the last five sessions, marking its toughest run since March 2020, Reuters reported. (Reuters)
Salesforce isn’t the only one feeling the pressure. The selloff has targeted cloud and data stocks broadly, dragging down firms with vastly different balance sheets and short-term outlooks.
Salesforce director Amy Chang disclosed in a company filing that she was granted 1,766 restricted stock units on Feb. 1. These RSUs will vest in quarterly instalments through November, according to a Form 4 filing. (SEC)
This story could still pivot on a single headline. If the AI disruption thesis seems exaggerated, or if investors reckon the selloff already factors in most of the bad news, software stocks might rebound fast. The flip side is true as well: more evidence that AI tools displace paid seats could prolong the de-rating.
Wednesday’s data on risk appetite and megacap earnings are next in focus. The ADP private-payrolls report arrives at 8:15 a.m. ET, followed by Alphabet’s earnings later in the day. Amazon is set to release its numbers on Thursday. (Investing)
