Salesforce shares declined 4.4% to $185 in extended trading Wednesday, extending losses after hitting a session low of $181.85. The drop reflects investor apprehension about the company's artificial intelligence strategy and its impact on both growth prospects and operational costs.
Market indices showed little movement, with the S&P 500 essentially flat and the Nasdaq Composite down 0.16%. Strong employment data reduced expectations for Federal Reserve interest rate cuts, creating headwinds for technology stocks. Attention now shifts to Friday's Consumer Price Index report for further monetary policy signals.
The software giant faces scrutiny following reports of workforce reductions affecting fewer than 1,000 positions across marketing, product management, data analytics, and its Agentforce AI division. Salesforce has not publicly addressed these reports.
On Tuesday, Salesforce announced a definitive agreement to purchase Cimulate, an AI-powered product discovery platform, to enhance its Agentforce Commerce suite. The acquisition, expected to close in the first quarter of fiscal 2027, represents a strategic bet on improving retail conversion rates as shopping increasingly begins with conversational AI interfaces.
Analysts view the move as a targeted investment in vertical-specific AI solutions rather than broad applications. "Agentforce Commerce needed retail-grade intent intelligence," noted Sanchit Vir Gogia of Greyhound Research, while Avasant's Gaurav Dewan highlighted Salesforce's pattern of acquiring specialized firms to deepen platform capabilities.
Technology stocks broadly retreated, with ServiceNow dropping 5.6%, Oracle declining 1.7%, and Microsoft falling approximately 2.2%. Salesforce is scheduled to report fourth-quarter and full-year fiscal 2026 results after market close on February 25, with a conference call at 5:00 p.m. ET.
