Should You Buy Salesforce Stock Before Feb. 25?

Core Viewpoint - Salesforce is experiencing significant stock volatility, with a year-to-date decline of 27% and a 12-month drop of 43%, amid broader market sell-offs and specific concerns regarding AI software competition [1][2]. Group 1: Stock Performance and Market Context - Salesforce stock dropped approximately 8% on February 3, coinciding with a 0.8% decline in the S&P 500 and a 2.4% drop in the Nasdaq Composite, driven by high-tech valuation concerns and potential government shutdowns [1][2]. - The stock is currently trading at a 52-week low of $191.35, with a price-to-earnings (P/E) ratio of 28, the lowest since the COVID-19 pandemic [8]. Group 2: AI Competition and Strategic Partnerships - The introduction of a new AI plug-in by Anthropic, which can handle legal queries and clerical tasks, has raised fears that it could disrupt traditional software models like Salesforce's [5][6]. - Despite these concerns, Salesforce is a partner with Anthropic, utilizing its Claude chatbot for its Agentforce model, which aims to enhance user experience through improved interaction [6]. Group 3: Financial Performance and Future Outlook - Salesforce reported a 114% year-over-year increase in annual recurring revenue for Agentforce and Data 360, reaching $1.4 billion, with Agentforce accounts growing by 70% quarter over quarter [9]. - The company's remaining performance obligation pipeline increased by 11% to $29.4 billion, and it raised its fiscal 2026 revenue guidance, indicating potential for recovery [9]. - Salesforce recently secured a $5.6 billion contract with the U.S. Army, further bolstering its financial outlook [9].