Salesforce (CRM) climbed 1.5% to $194.03 in after-hours trading Monday, mirroring a broader rebound in software equities. The iShares Expanded Tech-Software Sector ETF rose 3.1% during the session.
Heroku, a platform-as-a-service subsidiary of Salesforce, announced it will transition to a "sustaining engineering" framework, ceasing new enterprise account contracts. The move prioritizes platform stability and support over new feature development, according to a company post.
Analysts interpret the Heroku shift as a strategic reallocation of resources, potentially toward artificial intelligence initiatives. This comes as the software sector grapples with investor concerns that AI advancements could disrupt traditional per-seat subscription models.
Market sentiment toward software stocks showed signs of recovery Monday. The Nasdaq Composite gained 0.90%, while the S&P 500 added 0.47%. Oracle shares surged nearly 10% following an analyst upgrade, providing a lift to the sector.
Salesforce recently garnered attention through a high-profile Super Bowl marketing campaign featuring a $1 million online treasure hunt. The company reported over 53 million visitors to the campaign landing page, though some users experienced temporary registration delays due to overwhelming traffic.
The company is scheduled to report fourth-quarter and full-year fiscal 2026 results after the market closes on February 25. Investors will scrutinize the report for signs of sustained customer spending amid evolving competitive dynamics in enterprise software.
