Salesforce Inc: AI Ambitions Vs. Stock Realities Ahead Of Q1 Earnings Reveal

Salesforce Inc CRM is back in the spotlight, and not just for its high-profile, $8 billion Informatica acquisition. With first-quarter earnings set to drop after the bell on Wednesday, the real question is whether CEO Marc Benioff's AI-fueled ambitions can finally light a fire under a stock that’s been stuck in reverse.

Powering Its Agentforce Platform

CRM stock has shed over 16% year-to-date and 4.35% in just the past month. Wall Street expects the company to report an EPS of $2.55 on revenue of $9.75 billion for the quarter, as it reports after the market closes. Following a revenue miss earlier this year, the tech giant has taken a reputational bruise even as it builds what it calls the "AI-first enterprise cloud."

The recent buyout of Convergence.ai and now Informatica shows Salesforce isn't just talking a big AI game—it's doubling down on data to power its Agentforce platform.

Read Also: Steve Jobs Once Invited Marc Benioff To His Office With 2 iPads In 2010: The Lesson That Shaped A $270 Billion Salesforce Empire

Analysts See 22% Upside, CRM Stock Stuck In A Tug-Of-War

Wall Street, meanwhile, is divided but leaning optimistic. Analysts at WestPark Capital, Needham, and UBS reiterated Buy-equivalent ratings, with an average target of $340 – implying a 22% upside. The Street consensus is even more bullish, hovering near $371.

Chart created using Benzinga Pro

Technically, CRM stock is stuck in a tug-of-war. The eight-day and 20-day simple moving averages (SMAs) sit above the current share price of $277.19, flashing short-term bearish signals. But the 50-day SMA tells a more bullish story, suggesting some medium-term recovery potential for CRM stock.

The Moving Average Convergence Divergence (MACD) sits at 3.01, indicating growing upward momentum, while the Relative Strength Index (RSI) at 49.84 suggests CRM stock isn't oversold—yet.

With over $14 billion in cash, Salesforce has the firepower to keep its AI dreams alive. But investors burned by past M&A sprees are watching closely.

Can the company turn these shiny new toys into real revenue, or is this another case of clouded judgment? Salesforce will need to deliver not just on earnings, but on the narrative.

Read Next:

• Salesforce Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call