Salesforce Inc. (CRM) experienced a significant after-hours plunge of 5.45% on Wednesday, as investor sentiment turned sharply negative towards software stocks.
The selloff reflects growing concerns that artificial intelligence could fundamentally disrupt traditional software makers. Analysts note that even strong quarterly performance may not be enough to reassure shareholders, as fears persist that AI tools from companies like Anthropic are encroaching on core business functions such as legal, marketing, and customer-service work.
Compounding these sector-wide worries, the intense battle to build superior AI coding tools is sparking a broader selloff in software stocks. The recent news that SpaceX is lining up a massive $60 billion deal for AI start-up Cursor, as it morphs into a formidable AI competitor, has heightened investor anxiety about the competitive landscape for established software companies like Salesforce.
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