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Salesforce shares jump as $60 billion forecast boosts investor confidence

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Salesforce shares jump as $60 billion forecast boosts investor confidence

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Salesforce shares rose more than 6% in premarket trading on Thursday after the company projected over $60 billion in revenue by 2030, easing investor concerns over slowing growth amid rising competition from AI-powered tools.

The optimistic forecast, announced at Salesforce’s Dreamforce event, signals a strong recovery for the Marc Benioff-led firm, which earlier this year reported its first revenue decline in nearly three years. The projection excludes the impact of Salesforce’s planned $8 billion acquisition of Informatica, expected to close in the first half of 2026.

The deal will strengthen Salesforce’s artificial intelligence capabilities, integrating Informatica’s data management and governance tools into its cloud ecosystem. Analysts said the improved outlook and a $7 billion share buyback plan reflect management’s “confidence in durable free cash flow and sustained bookings growth.”

J.P. Morgan analysts noted that the new forecast could “shift the narrative toward sustainable double-digit growth,” while Jefferies said Salesforce’s expanding margins could bring it in line with other large-cap peers by the end of the decade.

Salesforce has been rapidly embedding AI partnerships into its platform, expanding collaborations with OpenAI and Anthropic to enhance its Agentforce 360 system. The company has also pledged to invest $15 billion in San Francisco over the next five years to drive AI adoption across its services.

Confluent explores potential sale amid rising AI data demand

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Confluent, a leading data streaming software company, is exploring a potential sale after attracting acquisition interest from private equity firms and technology companies, sources told Reuters. The discussions are still in early stages, with no guarantee a deal will materialize.

Shares of Confluent (CFLT.O) jumped 11% on Wednesday following the report, lifting its market value to about $7.9 billion. The move comes after the company’s stock fell 26% this year, making it a more appealing target for potential buyers, particularly after it lost a major customer in July.

Based in Mountain View, California, Confluent provides enterprise software that manages real-time data streams — a critical function for training and scaling artificial intelligence models. The firm was founded by the creators of Apache Kafka, an open-source system widely used for handling large volumes of live data such as financial transactions and web analytics.

The growing interest underscores the surge in demand for data infrastructure tools amid the AI boom. In May, Salesforce agreed to buy Informatica for about $8 billion to enhance its AI data management capabilities, signaling broader consolidation in the sector.

Confluent has not commented publicly on the talks. Industry analysts say any acquisition could mark a major shift in the AI software landscape as companies race to strengthen their data processing capabilities.

Salesforce Shares Slide as Weak Outlook Highlights Delayed AI Payoff

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Salesforce (CRM.N) shares fell nearly 8% on Thursday after the company issued a disappointing third-quarter revenue forecast, raising investor concerns that returns from its artificial intelligence investments may take longer to materialize.

The company projected revenue between $10.24 billion and $10.29 billion, with the midpoint falling short of analysts’ average estimate of $10.29 billion, according to LSEG data. Despite announcing a $20 billion expansion of its share buyback program, Salesforce’s muted guidance weighed heavily on investor sentiment.

The outlook comes as software companies face mounting pressure to prove that billion-dollar AI investments will deliver meaningful returns, even as customers scale back spending in an uncertain economic environment. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the guidance gives “bears fresh ammo amid mounting fears that the software sector is ripe for disruption.”

Salesforce has been rapidly integrating AI across its cloud services, including the 2024 launch of Agentforce, an AI-powered agent platform designed to automate workflows and improve margins. However, the company continues to face macroeconomic headwinds. Analysts at Oppenheimer described the growth outlook as “uninspiring,” noting challenges for front-office software suppliers this year.

Shares of Salesforce are down about 24% year-to-date. To strengthen its offerings, the company has returned to acquisitions, including its $8 billion purchase of Informatica in May. Still, Salesforce trades at a forward earnings multiple of 20.96—well below Microsoft’s 31.26 and Oracle’s 30.84—suggesting potential upside.

J.P. Morgan analysts said second-quarter results, which beat revenue expectations, alongside management’s positive commentary, indicate that Salesforce stock may be undervalued compared to peers, leaving room for recovery.