Salesforce.com (CRM) stock fell sharply by 5.02% during intraday trading on Monday. The decline reflects growing investor concerns ahead of the company's upcoming earnings report and broader sector pressures.
The drop coincides with several analyst actions. Morgan Stanley cut its price target on Salesforce to $287 from $398, while Jefferies reduced its target to $250 from $375. BNP Paribas also adjusted its target downward to $240 from $305. These revisions highlight increased caution regarding the company's near-term prospects.
Broader fears about artificial intelligence disrupting the software industry are weighing on the sector. Jefferies downgraded multiple software stocks, citing that the application software sector remains under pressure. Analysts note that software stocks have been on a selloff spree this year due to possible disruption from AI, which has triggered a sector-wide decline.