Salesforce Inc (NYSE:CRM) shares are tumbling Thursday as the software sector continues to slide. Wedbush's Dan Ives is pushing back on the sell-off.

Wedbush: The Selloff Doesn't Match Reality

The drop in Salesforce shares is part of a broader pullback across cloud and software names. Investors have spent months worrying about macro headwinds, rising competition in AI and the possibility that new AI‑native tools could chip away at traditional enterprise vendors.

Ives, however, thinks the market is misreading the setup. With geopolitical risk cooling and risk appetite improving, he believes the sector is positioned for a rebound — and that Salesforce is one of the names most out of sync with its underlying demand trends.

Ives argued this week that fears about AI replacing established enterprise platforms are exaggerated and that the narrative has overshadowed what's actually happening inside IT budgets. According to the Wedbush analyst, CIOs aren't pulling back at all.

Ives said the idea that AI will make companies like Salesforce obsolete is overstretched and that the real story is how quickly large enterprises are integrating AI into their existing systems rather than abandoning them.

After weeks of industry conversations, Ives said the message from CIOs is consistent: AI is no longer a side experiment. Companies are identifying concrete use cases and preparing to roll out AI across their organizations in 2026. That shift from pilot projects to full deployment is a major inflection point for enterprise software.

A Massive AI Spending Cycle Is Forming

Ives believes the market is missing the scale of what's coming. He expects AI spending to grow into the trillions across software, semiconductors and infrastructure and argued that a meaningful share of that will flow to application‑layer companies like Salesforce that help enterprises operationalize AI.

In his view, the recent pullback in software stocks doesn't line up with the demand curve he's seeing. If AI spending accelerates the way he expects, the current valuations for names like CRM look disconnected from the opportunity ahead.

The market has been fixated on recession fears, interest‑rate uncertainty and the threat of AI disruption. Ives is focused on execution and customer demand, both of which he sees improving.

CRM Trades Below Key Levels

Salesforce is trading 11.4% below its 20-day simple moving average (SMA), the stock's average price over the last 20 sessions, which suggests the near-term trend is still pointed down. It's also 23.9% below its 100-day SMA, indicating the intermediate trend remains firmly bearish and rallies have struggled to stick.

The relative strength index (RSI), a momentum gauge, is 34.42, which is consistent with weak momentum that's close to oversold conditions. RSI also entered oversold territory on April 9, aligning with the stock printing a fresh 52-week low the same day.

  • Key Resistance: $189.00 — a prior ceiling where rebounds have recently stalled.
  • Key Support: $174.50 — near the 52-week low zone where buyers may try to defend.

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $273.23. Recent analyst moves include:

  • BTIG: Buy (Maintains Target to $255.00) (April 1)
  • Northland Capital Markets: Market Perform (Lowers Target to $229.00) (March 10)
  • Citigroup: Neutral (Raises Target to $200.00) (March 2)

Benzinga Edge Rankings: The Benzinga Edge scorecard for Salesforce highlights its strengths and weaknesses compared to the broader market.

  • Momentum: Weak (Score: 5.7) — The stock's trend is lagging, matching its position near 52-week lows.
  • Quality: Neutral (Score: 32.9) — Fundamentals screen as middling versus peers, not a clear differentiator right now.
  • Value: Weak (Score: 24.13) — Valuation isn't screening as cheap enough to offset the downtrend.
  • Growth: Weak (Score: 13.83) — Growth scoring is low, which can limit dip-buying interest during selloffs.

The Verdict: Salesforce’s Benzinga Edge signal reveals weak readings across momentum, value and growth, with only a modest quality score. That mix fits a stock that may need a clear trend reversal on the chart before sentiment improves.

CRM Price Action: Salesforce shares were down 4.56% at $168.38 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro.

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