Salesforce’s Acquisition Spree Defies a Slumping Software Sector

As its share price hovers near a 52-week low, Salesforce management is shifting into an aggressive growth posture. The CRM leader’s recent purchase of the “Momentum” platform marks its tenth acquisition in a mere six-month span. This buying binge raises a critical question for shareholders: can such an assertive expansion strategy navigate the company through the ongoing industry-wide correction?

Wall Street’s Cautious Stance

In the near term, a sense of prudence dominates analyst sentiment on Wall Street. This week witnessed several prominent firms revising their price targets downward. Citigroup lowered its target from $257 to $197, while Wells Fargo reduced its expectation from $265 to $235. Crucially, the context is that most experts, including those at BTIG, maintain their fundamental “buy” recommendations despite these adjustments.

The next significant catalyst for the stock’s direction is anticipated on February 25th. After the market closes, Salesforce will report its fourth-quarter and full-year results. Investors will scrutinize the earnings release, focusing intently on the timeline for monetizing the heavy investments in the “Agentforce” platform and whether profit expectations can be met despite the costly acquisition strategy.

A Sector Under Strain

This investment offensive collides with a tense market environment. The broader software sector is grappling with a widespread sell-off. The pressure is evident in Salesforce’s stock performance: shares currently trade around €157.20, placing them within striking distance of the 52-week low of €155.50. Since the start of the year, the equity has lost over 27 percent of its value.

Should investors sell immediately? Or is it worth buying Salesforce?

Some market observers, like Wedbush’s Dan Ives, consider the selling pressure in the Software-as-a-Service (SaaS) space to be overdone. He contends that the expansion of AI infrastructure will ultimately present substantial long-term opportunities for established players such as Salesforce.

Strategic Focus on Artificial Intelligence

The latest acquisition represents another building block for Salesforce’s “Agentforce” AI platform. Momentum specializes in analyzing unstructured data from voice and video channels, including Zoom and Google Meet. The objective is to integrate these insights directly into Salesforce’s core systems. According to Steve Fisher, the company’s Chief Product Officer, the technology aims to automate complex workflows by transforming direct customer feedback into actionable data.

The transaction is scheduled for completion in the first quarter of fiscal year 2027. Financial terms of the deal were not disclosed. This move follows closely on the heels of another purchase in the commerce AI segment, the company “Cimulate,” which was acquired in early February.