Salesforce Stock Climbs After Earnings. Wedbush Calls It 'Long-Term Winner' of the AI Boom

Core Insights - Salesforce shares rose 4% to close just under $200, making it the best-performing stock in the Dow Jones Industrial Average on a day when the broader tech sector declined [1] - The company posted strong fourth-quarter results, exceeding analysts' estimates, driven by growing demand for its AI offerings, although its full-year revenue outlook fell short of expectations [1] - Analysts from Wedbush, Goldman Sachs, and Deutsche Bank remain bullish on Salesforce, with Wedbush calling it a "long-term winner" of the AI boom, despite lowering its price target from $375 to $325 [1] Financial Performance - Salesforce's fourth-quarter sales and profits surpassed analysts' estimates, indicating strong performance in the AI segment [1] - Despite the recent gains, Salesforce shares have lost approximately 25% of their value since the beginning of the year [1] - Price targets from Goldman Sachs and Deutsche Bank were adjusted to $281 and $255, respectively, still suggesting significant upside potential for the stock [1] Market Sentiment - The results are expected to improve sentiment around Salesforce shares, which have faced pressure alongside other software stocks due to concerns about AI disruption [1] - Wedbush characterized the recent sell-off in software stocks as "overblown," reinforcing a positive outlook for Salesforce in the context of the AI market [1]