Why Is Salesforce Trading Lower? Uncertainty Over Generative AI Impact Has Something To Do With It
Portfolio Pulse from AJ Fabino
Shares of Salesforce Inc (NYSE:CRM) dipped after Morgan Stanley downgraded the stock from Overweight to Equal Weight, setting a $278 price target. The downgrade is due to exhaustion of near-term catalysts and uncertainties surrounding the impact of Generative AI on growth. However, the new price target, up from $251, indicates bullish metrics ahead.
July 31, 2023 | 2:27 pm
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NEGATIVE IMPACT
Salesforce's stock was downgraded by Morgan Stanley due to exhaustion of near-term catalysts and uncertainties about Generative AI's impact. However, the new price target indicates potential growth.
The downgrade by Morgan Stanley is a negative signal to the market, which can lead to a decrease in the stock price. However, the new price target, which is higher than the current price, suggests potential growth, which could mitigate the negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100