Salesforce - AI Stock Analysis

Analysis generated December 4, 2025

Salesforce Inc. is a leading enterprise cloud computing solutions provider. The company is most notable for its Customer Relationship Management (CRM) software and applications focused on sales, customer service, marketing automation, analytics, and application development. As a powerhouse in its industry, Salesforce plays a critical role in shaping business operations and customer engagement for enterprises worldwide.

Fundamental Analysis

Salesforce reported a revenue of $10.3 billion for the last quarter, marking a slight increase of 0.22% from the previous quarter. Year-over-year growth is robust at 8.63%, indicating continued market demand and successful sales execution.

Net income for the last quarter was a substantial $4.84 billion, representing a significant increase of 156.60% from the previous quarter, and an astounding 217.09% growth year-over-year. This underscores effective cost management or other one-time benefits contributing to increased profitability.

Despite these positive indicators, EBITDA showed a worrying trend at $852 million, down by 73.57% compared to the previous quarter and 69.16% year-over-year. This steep decline necessitates further examination of operating efficiencies and non-operating activities.

The current Price to Earnings (P/E) ratio stands at 34.16. A high P/E ratio may indicate overvaluation of the stock, suggesting cautious optimism or a bearish outlook. The recent insider selling activity can also serve as another bearish signal, suggesting potential hesitancy within the company's internal stakeholders.

Technical Analysis

Salesforce's current stock price is $242.76, which is down by 4.59% compared to a month ago, and a notable 32.41% decline compared to a year ago. This may be concerning for long-term investors.

However, the short-term trend appears somewhat positive, with the SMA10 (Simple Moving Average over 10 days) at $233.11, higher than the previous SMA10 of $231.51. This indicates potential upward price movement.

The Relative Strength Index (RSI) is at 25.4, suggesting a potentially oversold condition, which could attract bargain hunters and short-term bullish activities.

Alternative Data Analysis

Job postings remain stable at 948, indicating a steady hiring pattern, which is generally a positive sign for business stability. However, the employee business outlook is neutral, reflecting neither strong optimism nor pessimism.

Customer engagement metrics show mixed results. Salesforce's estimated 93 million webpage visitors and 2,000 daily mobile app downloads (down by 8%) indicate potential stagnation or slight decline in customer acquisition. Social media engagement also shows a slight drop with Instagram followers stable at 290,000 and Twitter followers down by 1%.

AltIndex’s AI score for Salesforce stands at 44, which translates to a hold signal. This score integrates fundamental, technical, and alternative data to provide a holistic forecast.

Conclusion and Recommendation

Salesforce showcases strong fundamental performance with rising revenue and significant net income growth. However, the decrease in EBITDA and high P/E ratio indicate caution. Technical indicators present a mixed signal with short-term bullishness amidst long-term declines. Alternative data paints a picture of stability yet signals potential concerns on customer engagement.

Given the mixed signals from various analyses, the recommendation would be to hold Salesforce stock. Investors should monitor quarterly earnings, EBITDA trends, and customer engagement metrics closely before making further investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.