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].

Headquartered in San Francisco, California, Salesforce, Inc. (CRM) designs cloud-based customer relationship management software that unifies customers, data, and intelligence on a single platform. With a market cap brushing $198.9 billion, Salesforce leverages Agentforce, its suite of customizable artificial intelligence (AI) agents and tools, to merge autonomous intelligence, unified data, and Customer 360 applications. More News from Barchart Despite its scale, CRM stock has struggled. Over the past ...

Core Insights - Insider buying activity has been observed in Salesforce and SentinelOne, indicating potential confidence from executives in these companies as they head into the new year [1][3]. Salesforce - Salesforce Director David Blair Kirk purchased over 1,900 shares for more than $500,000 in mid-December, while activist firm ValueAct acquired an additional $25 million worth of Salesforce stock [2]. - The stock is currently trading at a forward price-to-sales (P/S) ratio of 4.7 times and a forward price-to-earnings (P/E) ratio of approximately 17.5 times based on 2026 analyst estimates, making it appear attractively priced [4]. - Salesforce has positioned itself as a leader in AI by acquiring Informatica and launching Data 360, which could drive significant growth as the company pivots towards becoming an AI agent company [6]. SentinelOne - Director Mark Peek bought nearly $600,000 worth of shares in mid-December, reflecting confidence in the company's future [3]. - SentinelOne has reported a revenue growth of 23% last quarter, yet it trades at a forward P/S ratio below 4.5 times 2026 analyst estimates, indicating it is undervalued compared to larger competitors [7]. - The company is expected to benefit from its partnership with Lenovo and its Singularity Data Lake product, which offers secure data queries at a lower cost and faster speed than competitors like Splunk [9].

永豐金證券亞洲研究部晨訊 2026/1/28 | 麥嘉嘉 | 研究部主管 | avis.mak@sinopac.com | | --- | --- | --- | | 張雪婷 | 研究部經理 | samantha.cheung@sinopac.com | | 林仲全 | 研究部資深專員 | kobe.lin@sinopac.com | 1 永豐金證券亞洲研究部晨訊 永豐金證券亞洲研究部 -今日市埸焦點及策略 今日市埸主要焦點 股市及產品投資策略 3 • 聯儲局開始一連兩日議息，在UnitedHealth股價暴挫拖累下，道指最多跌549點低見48862，收市仍跌408點或0.83%， 標指盤中破頂曾升0.56%至6988點，收市升0.41%創新高報6978；納指漲0.91%；金龍中國指數彈0.48%，金山雲 (03896)ADR走高8.8%。亞馬遜躍高2.6%，微軟和思科同揚2.2%，蘋果及輝達進賬1.1%。 • 特朗普政府提議凍結美國聯邦醫療保險支付費率，要求2027年醫療保險優良計劃(Medicare Advantage)淨平均支付 增幅為0.09%，遠低於分析員預期，消息拖累多隻醫療健康股份股價急瀉，Un ...

Industry Outlook - The S&P 500 Information Technology Index has declined by -1.75% year to date and -2.53% over the past month, indicating a challenging outlook for tech stocks in 2026, although not all major sector names are affected [1] - There is a prevailing optimism around AI, but experts caution that 2026 will focus on the proof of AI's return on investment, particularly for hyperscalers that have been investing heavily [2] - The market is expected to be "fine" in 2026, with positive results but likely unable to match the significant tech gains seen in previous years [3] Company-Specific Insights - Palantir has shown a one-year performance of 162.95%, but its stock may be losing appeal as it trades at over 100 times its revenue, raising concerns about its valuation amidst slowing growth [5][6] - Apple has a one-year performance of 9.37%, but faces challenges such as a 3.6% year-over-year decline in sales from China and high operating expenses, leading to a bearish outlook with shares potentially sliding to around $200 in 2026 [9][10] - Salesforce has experienced a one-year performance decline of -18.03% and is facing enterprise spending pressures, with a notable slowdown in Sales Cloud growth to 8.4% year-over-year [11][14] Investment Strategy - Investors are advised to consider selling high-valued, long-duration AI stocks with weak cash flow, as these stocks may not withstand market corrections if AI adoption does not meet expectations [6][15] - The technology sector is expected to undergo a consolidation phase in 2026, with a focus on companies that demonstrate visible AI revenue, strong cash flow, and reasonable valuations [4][17] - High-quality businesses like Apple, Salesforce, and Palantir may struggle if growth slows, suggesting that trimming or selling some technology names could be a prudent strategy for investors [18]

Core Insights - Salesforce, Inc. (CRM) is focusing on Data 360, previously known as Data Cloud, to stimulate growth as revenue expansion has slowed to single digits, with year-over-year revenue increases of 7.6%, 9.8%, and 8.6% in the first three quarters of fiscal 2026 [1][5] Group 1: Data 360 Strategy - Data 360 is central to Salesforce's strategy to address slowing top-line growth, combining various data tools into a unified offering to help companies manage and activate their data in real time [2] - The integration of Data 360 with other tools like Agentforce and Mulesoft is enabling enterprises to analyze data and apply AI across operations, potentially driving higher-value contracts for Salesforce [3] Group 2: Financial Performance - Data 360 and Agentforce generated $1.4 billion in recurring revenues in Q3 of fiscal 2026, marking a 114% year-over-year increase, with expectations that the data-related business could reach around $10 billion annually by fiscal 2027 [4] - The Zacks Consensus Estimate predicts revenue growth of 9.5% and 11% for fiscal 2026 and 2027, respectively, indicating a potential path for Salesforce to reaccelerate growth [5] Group 3: Competitive Landscape - Salesforce faces increased competition from Microsoft Corporation (MSFT) and Snowflake Inc. (SNOW) in the data cloud sector, with Microsoft leveraging its Azure Data platform and Snowflake focusing solely on data management [6][7][8] Group 4: Valuation and Estimates - Salesforce shares have decreased by 19.8% over the past year, contrasting with the Zacks Computer – Software industry's growth of 10.5% [9] - The company trades at a forward price-to-earnings ratio of 20.07, significantly lower than the industry average of 28.31 [13] - The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings suggests year-over-year increases of approximately 15.3% and 10.4%, respectively, with upward revisions in estimates over the past 30 days [16]

Core Insights - Salesforce's shares performed well last month, driven by a strong third-quarter earnings report that exceeded bottom-line expectations and an increase in guidance [1][7] Financial Performance - Revenue increased by 8.6% to $10.26 billion, aligning with estimates, while adjusted earnings per share rose from $2.41 to $3.25, surpassing estimates of $2.86 [4] - Adjusted operating income improved from $3.12 billion to $3.63 billion, indicating a better reflection of profitability [4] Strategic Developments - The company reported a significant growth in annual recurring revenue (ARR) for its Agentforce and Data 360 platforms, which rose by 114% to $1.4 billion [5] - Remaining performance obligations (RPO), a measure of backlog, increased by 12% to $59.5 billion [5] - Salesforce raised its revenue guidance for the year to between $41.45 billion and $41.55 billion, representing a 9%-10% increase [5] Market Reaction - Following the earnings report, Salesforce's stock jumped 3.7% on December 4 and gained an additional 5.3% the next day as analysts reacted positively [3] - The stock traded sideways for the remainder of the month, despite positive announcements, including a deal with Novartis [6] Future Outlook - The year 2026 is anticipated to be significant for AI software stocks, with expectations for continued growth in Salesforce's AI initiatives [9] - The overall growth rate for Salesforce is expected to remain modest, but strong performance in AI could attract more investors [10]

Core Insights - ServiceNow (NOW) is actively expanding its portfolio through multiple acquisitions, including Logik.io, data.world, and Moveworks, enhancing its capabilities in AI-powered solutions and enterprise data governance [1] - The company has crossed a significant milestone with its Security and Risk business, achieving over $1 billion in annual contract value in Q3 2025 [2] - The acquisition of Veza strengthens NOW's security offerings by providing advanced identity governance capabilities, which will integrate with ServiceNow's existing workflows and AI systems [3] - ServiceNow's acquisition of Armis for $7.75 billion enhances its security portfolio, particularly in cyber exposure management, and is expected to drive AI adoption [4] - The company has raised its subscription revenue guidance for 2025 to between $12.835 billion and $12.845 billion, indicating a 20% growth on a non-GAAP constant currency basis [5] Financial Performance - ServiceNow's subscription revenue growth is projected to slow to 20% in 2025, down from 23% in 2024, due to tightening budgets in U.S. federal agencies [6] - The company's share price has decreased by 27.4% over the past year, underperforming the broader Zacks Computer and Technology sector, which returned 26.2% [11] - The forward 12-month price/sales ratio for ServiceNow is 12.01X, significantly higher than the sector average of 7.31X, indicating that the stock may be overvalued [14] Competitive Landscape - ServiceNow faces strong competition from Atlassian and Salesforce, both of which are enhancing their offerings in enterprise collaboration and AI capabilities [7][9] - Atlassian is focusing on subscription-based solutions and has seen significant enterprise penetration, with over 500 customers spending more than $1 million annually [8] - Salesforce reported a 10% year-over-year increase in subscription and support revenues, driven by its AI products, indicating robust growth in its cloud business [10]

Core Insights - Salesforce, Inc. (NYSE:CRM) is gaining attention as an AI stock, with BTIG initiating coverage with a "Buy" rating and a price target of $335.00, citing momentum from Agentforce, an improving narrative, and underestimated execution [1][5] - The company is undergoing a structural shift due to artificial intelligence, aiming to secure a strong position in the market once again [1] Company Developments - Salesforce has successfully re-architected its core platform and developed Data 360, a comprehensive data platform for creating golden customer records, alongside significant innovations in the Agentforce layer [2] - The management's tone has improved, particularly noted during the Dreamforce event, where they shared business trends transparently and proactively [3] Financial Performance - Agentforce's Annual Recurring Revenue (ARR) surpassed $540 million, reflecting a 330% year-over-year increase, primarily driven by customer pilots, with an Average Revenue Per Customer (ARPC) of approximately $57,000 [5] - The number of customers in production is rapidly increasing, with a 70% quarter-over-quarter growth, and feedback from customers and partners regarding Agentforce has been largely positive [4][5] Future Outlook - There is confidence in the acceleration of New Net Annualized Organic Value (NNAOV), which is expected to grow faster than Average Order Value (AOV) through the next year, projecting a return to organic double-digit subscription revenue growth in F4Q27 [4]

Core Insights - Salesforce, Inc. (NYSE:CRM) is recognized as a top AI and technology stock by hedge funds, with Morgan Stanley adjusting its price target to $398 from $405 while maintaining an "Overweight" rating following strong earnings [1][2]. Financial Performance - For Q3 FY 2025, Salesforce reported revenue of $10.3 billion, marking a 9% year-over-year increase and an 8% increase in constant currency, driven by growth in subscription and support revenues [2]. - The company's net income for Q3 FY 2025 was $2,086 million, up from $1,527 million in Q3 FY 2024, with key products like Agentforce and Data 360 contributing to this growth [3]. - Salesforce raised its FY 2026 revenue guidance to between $41.45 billion and $41.55 billion, with a strong cRPO of $29.4 billion, reflecting an 11% year-over-year increase, indicating a robust future revenue pipeline [3]. Market Position - Salesforce specializes in customer relationship management technology, connecting companies with their customers, and is considered a significant player in the AI and technology sectors [4].