On July 22, Salesforce.com declined 3.03% in regular trading, trading at $164.935/share, with turnover of $354 million. The stock came under renewed pressure following a major analyst downgrade amid broader SaaS sector weakness.

Morgan Stanley downgraded Salesforce.com from Overweight to Equal Weight and cut its price target from $287 to $185, a reduction exceeding 35%. Analyst Adam Wood noted that while the company's AI agent product Agentforce is showing strong KPI performance, legacy portfolio drags have offset AI-driven incremental gains, leaving overall organic revenue growth without a clear inflection point. The firm expects shares to remain range-bound.

Adding to headwinds, reports emerged that U.S. small businesses are increasingly using AI coding tools from Anthropic and Replit to build custom applications replacing Salesforce subscriptions, saving tens of thousands to hundreds of thousands of dollars annually. The broader SaaS sector traded lower collectively, with Bernstein and KeyBanc having already downgraded Salesforce in recent weeks, while market disagreement over near-term AI monetization pace continues to suppress valuation recovery.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)