Salesforce stock declined 13% year-to-date. An analyst upgraded the company to a "Strong Buy," calling the selloff overdone. Negative sentiment stems from a broader software sector pullback related to concerns about AI monetization and profitability.
The upgrade highlights strong fundamentals. The company boasts robust free cash flow (FCF) generation. FCF margins are expected to significantly expand. Revenue contribution from the Agentforce AI platform remains small. Current bookings and demand continue to show double-digit momentum, presenting a contrarian buy opportunity.