New York, January 31, 2026, 16:16 EST — Market closed.
- After a steep sector selloff the previous day, Salesforce shares closed Friday down 0.8%.
- With major earnings and jobs reports on the horizon, traders are debating if AI tools pose a real risk to “software-as-a-service” subscription models.
- Attention now turns to U.S. jobs data due Feb. 6, alongside Salesforce’s anticipated earnings report later this month.
Salesforce (CRM) shares ended Friday at $212.29, slipping 0.8%, as a tough finish for U.S. software stocks had traders searching for support ahead of Monday’s open.
The stock tumbled 7.1% on Thursday as software companies faced a selloff amid concerns that emerging AI players might disrupt the economics behind the traditional “software-as-a-service” (SaaS) subscription model that many rely on. J.P. Morgan analysts described the situation as a “vicious cycle” of depressed valuations paired with persistently high expectations. (Reuters)
Here’s the situation: a battered sector faces a week loaded with key earnings reports and a U.S. jobs number, as investors wrestle with how fast AI will reshape the hierarchy in business software. (Reuters)
Friday saw little respite for broader markets. Wall Street’s key indexes closed down as investors digested President Donald Trump’s pick of former Fed governor Kevin Warsh to replace Jerome Powell, alongside a hotter producer-price report and fresh developments in shutdown talks. (Reuters)
Some of the selling feels indiscriminate. “It doesn’t really matter, what the reality is or isn’t. Those stocks are getting hit pretty hard,” said Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors, referring to worries that AI might “supplant some of their services.” (Reuters)
The sell-off wasn’t limited to Salesforce. Thursday’s decline also dragged down Adobe and Datadog. SAP’s cautious cloud forecast, coupled with ServiceNow’s drop after its earnings release, heightened concerns that demand and pricing power could be weakening at an inopportune moment. (Reuters)
Salesforce investors are facing a key question: will the market continue to assume the worst until proven otherwise, or could the upcoming earnings prompt a change in sentiment? The stock has largely moved under the cloud of the sector’s AI debate, not on news specific to the company.
Salesforce has focused its narrative on growth and monetizing its AI “agent” initiative. In December, the company lifted its fiscal 2026 revenue and adjusted profit projections, citing increased enterprise demand and uptake of its Agentforce offerings. (Reuters)
The downside is clear: if peers dial back their cloud outlook or if macro conditions drive yields higher and valuations lower, long-duration software stocks could stay under pressure—even without any fundamental slip-ups.
Traders will probably view Monday as a mood gauge for software stocks following last week’s declines, as Microsoft’s cloud updates and SAP’s forecast continue to resonate across the sector.
Salesforce’s quarterly earnings report is set for Feb. 25, per Yahoo Finance’s earnings calendar. (Yahoo Finance)
