Barron's Drops Salesforce Stock Recommendation After 34% Drop

Barron's has withdrawn its buy recommendation for Salesforce (CRM) after the stock dropped 34% since it recommended the stock in late December. The publication believes the market is convinced that high-growth days are behind—not ahead—of Salesforce, as OpenAI and Anthropic pose a long-term threat to software application demand.

Recommendation Change

• Before: Barron's recommended buying the stock in December.
• After: Withdrawn recommendation, no new rating given.

Barron's Rationale

Barron's sees companies like OpenAI and Anthropic as long-term threats to software application demand, reducing Salesforce's growth prospects. Revenue, excluding the $444 million Informatica acquisition, was about $10.7 billion, up only 8.5% year over year.

Context

The stock has underperformed since the recommendation, prompting Barron's to reassess. Other analysts may have different views, but Barron's focuses on structural risks.

What to Make of It

The withdrawal does not necessarily mean the stock will continue to fall, but it signals that Barron's sees more risks than opportunities in the near term.