New York, Feb 5, 2026, 17:37 EST — After-hours
- On Thursday, Salesforce shares dropped 4.8%, ending the day just below $190
- Software shares remained under pressure amid concerns that AI might upend subscription-based revenue models
- All eyes now shift to Salesforce’s February 25 earnings report as the next key catalyst
Shares of Salesforce Inc (CRM) dropped 4.8% on Thursday, closing at $189.97. The stock swung between $187.80 and $200.40, with roughly 21.9 million shares changing hands.
Salesforce tumbled alongside other software-as-a-service (SaaS) stocks as investors dumped subscription cloud apps amid concerns that rapid advances in AI could undercut demand and pricing power. The S&P 500 software and services index plunged 4.6%, pushing its year-to-date loss to roughly 16.5%, deepening what traders are now dubbing a “software-mageddon.” Dave Harrison Smith, CIO at Bailard, called it a “sell-everything mindset,” while Reuters reported rising short interest in mid- and large-cap software names. 1
The stock plunged about $9.55, ranking among the top decliners on the Dow as it fell over 500 points. Salesforce and Amazon alone shaved roughly 117 points from the price-weighted index, according to MarketWatch’s analysis. 2
The selloff has spread worldwide, as investors in Europe and Asia offload software stocks while weighing if new AI tools can replace tasks traditionally handled by costly software suites. A Guardian market live blog linked this week’s drop to renewed excitement about Anthropic’s AI offerings for legal work. 3
Salesforce announced Wednesday it will report fourth-quarter and full-year fiscal 2026 results on Feb. 25, after the U.S. market closes. A conference call is set for 5 p.m. ET that day. Traders are now focused on whether the company’s AI initiatives are moving beyond pilot stages to actual paid adoption. 4
On Thursday, Salesforce released its annual Connectivity Benchmark Report, revealing that companies currently use an average of 12 AI agents and anticipate that figure will jump 67% over the next two years. Andrew Comstock, a MuleSoft executive, emphasized that success doesn’t come from the number of agents deployed but from how they’re governed and coordinated. Deloitte’s Kurt Anderson stressed the importance of “moving from simply deploying agents to operationalizing them at scale.” 5
Salesforce’s Agentforce 360 made waves in customer marketing this week. LIV Golf announced its broadcasts will feature an AI “Agent Caddie” called Chip, delivering predictive shot outcomes and player stats straight to on-air analysts. 6
Some bulls on Wall Street are already sniffing out a bottom. Wedbush analyst Dan Ives dismissed the sector’s selloff as a “garage sale,” telling Business Insider that investors are fixated on a near-term “doomsday scenario.” He remains bullish on Salesforce, keeping it on his buy list with a $375 price target. The stock has fallen more than 21% so far this year, he noted.
Value investors are showing interest, at least on paper. Barron’s reports that Salesforce is now trading with a forward price-to-earnings ratio below 15. This valuation, based on expected profits, is not only lower than its historical norm but also undercuts the broader S&P 500. 7
Yet what comes next hinges on the data, not the storylines. Should Salesforce’s guidance fall short or clients delay major CRM deployments, shares might face steeper declines—especially as discussions around AI disruption continue to expand.
Traders are now focused on whether software stocks can find footing as Friday’s session unfolds and if the recent selloff prompts more analysts to lower their estimates. Salesforce’s next major event comes Feb. 25, when it releases earnings after the market closes and fields investor questions about demand trends and its AI strategy.
