Salesforce shares fell 4.98% to $189.50 in after-hours trading on February 5th. This decline follows a broader software sector collapse that began on February 3rd. Investors fear that generative AI tools could replace traditional software services. Anthropic’s new legal automation tools triggered a $300 billion market value loss across software indices. The selloff reflects concerns that AI may undermine the competitive advantages of established software makers.
Salesforce stock has declined 42.3% over the past 12 months. Analysts remain divided ahead of the company’s fiscal Q4 earnings report on February 25, 2026. Piper Sandler recently lowered price targets for the firm, citing seat-compression risks from agentic AI. Other analysts view the pullback as an entry opportunity due to favorable 2026 macroeconomic conditions. The stock currently trades 39% below the analyst consensus target of $327.86.