Salesforce.com shares plummeted 5.07% intraday on Thursday, extending a sell-off that began in the pre-market session following a wave of bearish analyst actions.
The decline was triggered by Morgan Stanley dramatically cutting its target price on the stock from $287 to $185 — a reduction exceeding 35% — while downgrading the rating from Overweight to Equal-weight. Analyst Adam Wood noted that legacy business weakness continues to offset AI-driven gains from its Agentforce product, leaving no visible inflection point in overall organic revenue growth. Bernstein also downgraded Salesforce.com to Market Perform, and Barclays lowered its target price to $236, creating a confluence of negative signals that reversed the prior session’s gains driven by software sector rotation.