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Salesforce stock revival hinges on success of AI agents

Feb 25, 2025 - financialpost.com
Salesforce is focusing on AI agents to revive its stock performance, which has been declining despite previous positive earnings reports. The company launched its Agentforce product to automate multistep processes without human supervision, and its success is seen as crucial for Salesforce's growth. The upcoming financial results will be a key indicator of the product's impact and whether the investment in AI has been worthwhile. Analysts are optimistic about Salesforce's potential in the AI space, with some expecting significant long-term benefits, although near-term results may not yet reflect this potential.

Despite recent stock underperformance, Salesforce is considered well-positioned to capitalize on AI agent technology, with Wall Street generally positive about its prospects. The company has been actively hiring for its AI strategy, even as it reduces jobs in other areas. With the stock trading at a discount compared to its historical averages and other tech indices, an upside surprise in the upcoming report could serve as a catalyst for stock recovery. The long-term outlook remains strong, with expectations that Agentforce will become a significant part of Salesforce's business.

Key takeaways:

  • Salesforce is well positioned to deploy AI agents into its software for functions like customer service, scheduling, and lead scoring.
  • The company's Agentforce product is seen as a key driver for future growth, despite recent stock underperformance.
  • Wall Street is optimistic about Salesforce's ability to capitalize on AI, with expectations for positive results from Agentforce.
  • The stock is considered a relative bargain among megacap AI stocks, with potential for significant upside if Agentforce succeeds.
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