Salesforce took the initiative to transform its layout in the Agent era, but was dragged down by its traditional business and was downgraded to an even allocation (Morgan Stanley)
The report points out that Salesforce is actively promoting its own changes to prepare for the Agentforce (intelligent) era, and relevant operating indicators are improving.
The report points out that Salesforce is actively promoting its own changes to prepare for the Agentforce (intelligent) era, and relevant operating indicators are improving. However, traditional businesses such as Commerce and Tableau continue to be a drag, and organic growth has not yet reached an inflection point. The current valuation of about 19 times GAAP price-to-earnings ratio is relatively reasonable, and the stock price lacks an obvious growth inflection point and will remain range-bound. The market has high hopes for Salesforce's Agentforce story, but may have overlooked the reality that its traditional business is "bleeding" and the overall growth inflection point has not yet arrived. One-sentence conclusion: Salesforce's Agent AI story is exciting, but it is offset by the weakness of its traditional business and overall stagnant growth. The stock price is expected to fluctuate in a range, and it needs to wait for the realization of new business to bring about a real growth inflection point. Positive/negative: Neutral to bearish for Salesforce (CRM.US). The bright spots of its Agentforce business may be overshadowed by the weakness of its traditional business, and the stock price lacks a major upward catalyst before the growth inflection point appears. Catalysts: 1) Subsequent quarterly financial reports to verify whether Agentforce’s contribution to total ARR growth has accelerated; 2) improvement in traditional businesses (Commerce, Tableau); 3) whether the company provides clearer growth inflection point guidance.