Salesforce Q3 Review: Growth Is Still Slowing
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Salesforce's revenue growth is slowing due to competition from AI-driven sales tools, affecting margins and market share. Despite a 35% stock price rise, its premium P/E ratio is seen as unjustified due to growth deceleration and negative earnings revisions. CEO Marc Benioff's optimism about AI agents is questioned as the AI sales-tech space becomes commoditized.

December 06, 2024 | 8:30 am
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Salesforce's revenue growth is slowing due to competition from AI-driven sales tools, affecting its market share and margins. Despite a 35% stock price increase, its premium P/E ratio is seen as unjustified due to growth deceleration and negative earnings revisions.
The article highlights Salesforce's slowing revenue growth due to increased competition from AI-driven sales tools, which pressures its margins and market share. Despite a significant stock price increase, the premium P/E ratio is considered unjustified due to negative earnings revisions and growth deceleration. This suggests a potential negative impact on Salesforce's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100