Salesforce shares closed 0.7% higher at $191.35 on Friday, recovering from a 52-week low of $187.12 reached earlier in the session. Despite the late-day rebound, the stock finished the week down approximately 9%, caught in a broader shift within the artificial intelligence investment landscape.
AI Divergence Hits Software
The decline reflects a growing divergence in AI-focused markets, where capital is flowing toward hardware and infrastructure companies while software firms perceived as exposed to AI disruption are under pressure. "This divergence is not a vote against AI," noted Saxo analyst Charu Chanana, highlighting a tactical rotation rather than a sector-wide retreat.
Market sentiment remains volatile, with concerns lingering over whether massive AI investments—estimated at $600 billion this year from major tech firms—will translate into profits. "It got too pricey," remarked Andrew Wells of SanJac Alpha, summarizing investor caution toward premium valuations.
Upcoming Catalysts
Salesforce's next major test arrives on February 25, when the company reports fourth-quarter and full-year fiscal 2026 results after the market closes. The subsequent conference call will be closely watched for management's commentary on AI strategy and its impact on the firm's subscription-based customer relationship model.
Broader economic data could influence tech valuations before earnings. Delayed U.S. jobs figures are now scheduled for February 11, followed by the consumer price index on February 13. These releases may shift interest rate expectations and, consequently, impact growth stock valuations.
The fundamental challenge for Salesforce extends beyond near-term financials. Investors are grappling with whether AI will amplify demand for its software, commoditize its offerings, or simply redirect enterprise spending toward other parts of the technology stack. The upcoming earnings report will provide a critical snapshot of how the company is navigating this transition.