Salesforce Shares Reach Record High on Exciting AI Innovations
Salesforce shares surged by 11% to a record high following strong quarterly sales and positive outlook on AI products. The company's Agentforce AI platform is expected to drive growth, with 200 deals secured shortly after its launch. Salesforce's revenue forecast for fiscal year 2025 has been revised upwards, contributing to the positive market sentiment.
This surge followed the company's surpassing of quarterly sales expectations and its optimistic outlook for its newly introduced AI-integrated products. Salesforce is pinning its hopes on Agentforce to drive its growth, capitalizing on the increasing demand for AI agents capable of autonomously completing tasks.
Angelo Zino, a senior equity analyst at CFRA Research, expressed confidence in Salesforce's Agentforce AI agent builder platform, foreseeing a positive impact on the company's performance in the coming years. Despite Agentforce being made available only in late October, Salesforce executives reported securing 200 deals and foresee a robust pipeline of future deals.
During early morning trading, Salesforce hit a record high of US$368.7, potentially adding over $35 billion to its market valuation of $316.85 billion if the gains are sustained. Notably, around 20 analysts have raised their price targets for the stock, reflecting the positive sentiment towards the company's performance.
The company's stock has seen a 26% increase this year, with a new median price target of US$380 suggesting a potential 15% upside. This optimistic outlook has also had a ripple effect on other U.S. cloud companies, with Oracle, ServiceNow, Datadog, and Snowflake all experiencing gains in their stock prices.
Looking ahead, Salesforce has revised its revenue forecast for fiscal year 2025 to be between US$37.8 billion and $38 billion, up from the previous range of US$37.7 billion to $38 billion. In the third quarter, the company reported a revenue increase of 8% to US$9.44 billion, surpassing the average analyst estimate of US$9.35 billion.
Analysts at Baird Equity Research are optimistic about Salesforce's prospects for fiscal year 2026, citing reasonable expectations from the market, advancements in the company's AI strategy, and the potential for increased front-office spending.
Salesforce shares surged by 11% to a record high following strong quarterly sales and positive outlook on AI products.
The company's Agentforce AI platform is expected to drive growth, with 200 deals secured shortly after its launch.
Salesforce's revenue forecast for fiscal year 2025 has been revised upwards, contributing to the positive market sentiment.
Source: REUTERS