NEW YORK, Feb 4, 2026, 11:35 a.m. (ET) — Regular session
- Salesforce shares barely moved in late morning trading, following a steep decline the previous day.
- Investors are slashing valuations of software stocks amid concerns that emerging AI tools might disrupt established players.
- Attention shifts to Salesforce’s upcoming earnings and guidance, searching for signs of demand strength and how it’s capitalizing on AI.
Salesforce shares crept up 0.1% to $196.54 in late-morning trading on Wednesday, rebounding after a roughly 7% drop the day before. The stock bounced between a low of $187.29 and a high of $199.64, with around 11.1 million shares changing hands.
The muted move is significant since Salesforce offers one of the clearest insights into the big-ticket business software space, particularly “software as a service” — internet-based subscriptions — which investors have long viewed as stable and reliable.
This week, that certainty faltered. A new wave of AI-related anxiety sent traders puzzling over a sharp question: does AI boost software’s staying power, or does it render pieces of it disposable?
Wall Street sank sharply Tuesday, rattled by fears that AI might ramp up competition for software firms. “A broad swath of software companies is getting hit,” noted Art Hogan, chief market strategist at B. Riley Wealth. Salesforce, Datadog and Adobe all tumbled roughly 7%, while Intuit plunged 11%. (Reuters)
Some strategists argue the market is getting ahead of itself when it comes to what AI tools can currently deliver inside big companies. Mark Murphy of J.P. Morgan called it an “illogical leap” to expect new productivity plug-ins to replace “mission-critical enterprise software.” At Quilter Cheviot, Ben Barringer warned investors risk more volatility by “shoot[ing] first and ask[ing] questions later.” Nvidia CEO Jensen Huang dismissed the notion that AI will supplant existing software tools, labeling it “illogical” and saying “time will prove itself,” Reuters reported. (Reuters)
Salesforce is aiming for a more grounded approach in this debate. On Monday, it announced support for Anthropic’s Model Context Protocol (MCP) — an open standard designed to securely link AI systems with external tools and data. The rollout starts with new bi-directional extensions in Claude, initially integrated with Slack, then expanding across its Agentforce 360 platform. “By partnering with Anthropic, we are bringing Salesforce directly into our customers’ flow of work,” said Nick Johnston, a senior vice president at Salesforce. (Salesforce)
The tension on the tape is clear. Headlines tout partnerships and integration efforts, but the price action tells a different story: investors remain focused on the downside risks. AI-native competitors and customers developing their own tools are undercutting pricing power.
Traders are closely monitoring if the broader software sell-off eases or morphs into a deeper, prolonged reset in valuations. Another downgrade or a fresh macro shock could easily keep CRM’s volatility elevated.
Salesforce’s quarterly report is the next big catalyst. MarketBeat expects it to drop after the close on Feb. 25, though the company hasn’t officially confirmed the date. Investors will be watching closely for any signs of demand and whether the AI features are driving actual revenue, beyond just demos. (Marketbeat)
