{"id":49840,"date":"2026-06-17T11:35:04","date_gmt":"2026-06-17T11:35:04","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/17\/salesforce-stock-wipeout-hits-212b-as-acquisition-spree-backfires\/"},"modified":"2026-06-17T11:35:04","modified_gmt":"2026-06-17T11:35:04","slug":"salesforce-stock-wipeout-hits-212b-as-acquisition-spree-backfires","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/17\/salesforce-stock-wipeout-hits-212b-as-acquisition-spree-backfires\/","title":{"rendered":"Salesforce stock wipeout hits $212B as acquisition spree backfires"},"content":{"rendered":"
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Salesforce stock continues its strong downward trend this year, and is now hovering near its lowest level since 2023. CRM has plunged by 55% from its all-time high, with its market capitalization falling from $346 billion to $134 billion, a $212 billion wipeout.<\/p>\n

Salesforce continues its growth through acquisitions<\/h2>\n

The CRM stock price has plunged this year amid concerns that the software industry is at risk of a major disruption by AI companies. Indeed, top companies like Intuit, The Trade Desk, Adobe, Workday, Autodesk, and ServiceNow are among the worst laggards in the S&P 500 Index this year.<\/p>\n

Salesforce has also faced the challenge of slowing organic growth, with the management pivoting towards acquisitions. It continued this trend this week after it announced a $3.6 billion buyout of Fin, a company that leverages AI in customer engagement. <\/p>\n

Before acquiring Fin, the company spent billions of dollars on acquisitions. Most recently, it spent $8 billion to acquire Informatica<\/a>. It also paid $27.7 billion for Slack, $15.7 billion for Tableau, $6.5 billion for MuleSoft, and $2.5 billion for ExactTarget. In addition, the company spent $1.9 billion to acquire Own Company and $1.35 billion for ClickSoftware.<\/p>\n

Salesforce has spent over $65 billion in acquisitions over the years. As such, with its market capitalization standing at $135 billion, it means that its growth through acquisitions approach has largely backfired. Indeed, the company bought Quip in 2016 in a $518 million deal and is now in the process of winding it down.<\/p>\n

Salesforce\u2019s revenue growth has slowed<\/h2>\n

The most recent results showed that Salesforce\u2019s revenue jumped by 13% in the first quarter to $11.1 billion. Its organic growth was much lower than that as it included a $444 million revenue from Informatica.<\/p>\n

With Informatica\u2019s contribution, analysts expect that the company\u2019s revenue will grow by 11% this year to $46 billion. It will then make $50 billion next year, up by 9.75% YoY. <\/p>\n

On the positive side, Salesforce is buying tons of stock. It announced a $25 billion repurchase program after it returned $27.5 billion last year. <\/p>\n

At the same time, Salesforce stock has become highly undervalued<\/a>. Its forward price-to-earnings ratio has moved to 11.7, much lower than the sector median of 24. Its rule-of-40 multiple, based on its 10% revenue growth and EBITDA margin of 30% makes it fairly undervalued.<\/p>\n

Fundamentally, there is a risk that the stock will continue falling as demand for software firms continue falling. In the long-term, however, chances are that it will rebound as investors rotate towards these companies.<\/p>\n

Salesforce stock price technical analysis<\/h2>\n
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CRM stock chart | Source: TradingView<\/em><\/p>\n

The weekly chart shows that the CRM share price has slumped in the past few years, moving from $370 to $164 today. It formed a head-and-shoulders pattern and has already moved below the neckline at $227. H&S is one of the most common bearish signs in technical analysis.<\/p>\n

The stock formed a death cross pattern in March this year as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other. It also slumped below the 61.8% Fibonacci Retracement level.<\/p>\n

Therefore, the stock will likely crash from the current $164 to $100 as the bearish momentum continues. On the other hand, a surge above the key resistance at $227 will invalidate the bearish outlook.<\/p>\n

The post Salesforce stock wipeout hits $212B as acquisition spree backfires<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Salesforce stock continues its strong downward trend this year, and is now hovering near its lowest level since 2023. CRM has plunged by 55% from its all-time high, with its market capitalization falling from $346 billion to $134 billion, a $212 billion wipeout. Salesforce continues its growth through acquisitions The CRM stock price has plunged <\/p>\n","protected":false},"author":1,"featured_media":49841,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-49840","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world"],"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49840"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49840\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49841"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}