Can Salesforce Stock Recover in 2025? Here’s What Wall Street Thinks Now

Wall Street's crystal ball is foggy again—this time, it's Salesforce in the crosshairs.

Analysts are scrambling to adjust their models, but the consensus seems to be a collective shrug. Some see a classic buying opportunity after the recent dip, while others warn of structural headwinds that no amount of AI buzzwords can solve.

The Bull Case: Growth at Any Cost

Proponents point to the company's entrenched position in the CRM space. It's not just software; it's the operational backbone for thousands of enterprises. The bet is that existing clients have nowhere else to go—a captive audience that will keep paying for upgrades and add-ons, even in a tight economy.

The integration of AI across its platform is the new narrative fuel. Every earnings call now features a mandatory mention of 'Einstein' or 'AI-driven insights,' designed to convince investors that this isn't your grandfather's SaaS company.

The Bear Trap: Saturation and Squeeze

Critics fire back. Market saturation is real. How much more can you grow when you already dominate? New competitors are niching down, offering cheaper, more agile solutions that bypass Salesforce's notorious complexity and cost.

The bigger fear? A profitability squeeze. The era of growth-at-all-costs is over. Investors now demand actual profits, not just promised future ones. Salesforce's massive spending on sales, marketing, and acquisitions is under a microscope. One cynical analyst quipped, 'Their R&D budget looks like a venture capital fund that forgot to invest in other companies.'

The Verdict: A Waiting Game

So, can it recover? Probably. Will it soar to new heights? That's the trillion-dollar question. The recovery hinges on execution—proving its AI features move the needle on real customer outcomes, not just conference slide decks, and showing it can grow margins without stalling the engine.

In the end, Wall Street thinks what it always thinks: it depends. The stock might bounce on a beat-and-raise quarter or sink on a guidance miss. For now, the street is watching, waiting, and collecting its management fees either way.

Why This Is Significant

Salesforce's stock has lagged many of its peers in software this year, missing out on the AI rally that's boosted shares of a wide range of companies. Thursday's gains on a stronger outlook and signs that it's making progress could point to a turnaround.

Morgan Stanley analysts, who reiterated an "overweight" rating and a Street-high target of $405 following the company's results, told clients they believe investors are underestimating the software giant's AI potential.

"It may take a few more data points for a skeptical investor base to come on board," they said. Still, the analysts said they WOULD be buyers at this stage, with signs of a pickup in new AI-related business and easing bookings headwinds.

Analysts at Bank of America pointed to Salesforce's backlog, which expanded faster than anticipated, as another strong signal of future demand bolstering their bull case and $305 target for the stock.

Jefferies analysts, who maintained a $375 objective and "buy" rating, said they believe the company's current-quarter forecast could be conservative, leaving room for another upside surprise.

Related Education

While Wall Street's ratings may be in flux, most analysts are sticking by their support for the stock. Of the 18 analysts surveyed by Visible Alpha, 14 have issued "buy" calls, compared to four neutral ratings. Their mean target around $330 would suggest a near-full recovery to its levels to start the year.