Salesforce shares experienced a significant decline on Thursday following the cloud software provider's release of a sales forecast that did not meet market expectations. This downturn has raised apprehension regarding the market's receptiveness to its flagship AI agent platform. Although the company's second-quarter fiscal results surpassed analysts' revenue and earnings projections, the revenue outlook for the current quarter, anticipated to be between $10.24 billion and $10.29 billion, proved underwhelming. Investors are increasingly seeking robust sales growth from companies, like Salesforce, that have made substantial investments in artificial intelligence-powered software solutions.
Salesforce's stock (CRM) saw a nearly 5% drop, trading around $244 on Thursday, making it the biggest laggard in the Dow Jones Industrial Average. The company's shares have now fallen by 27% since the beginning of 2025, driven by concerns about its decelerating revenue expansion and the adoption rate of its AI Agentforce platform.
Looking at the technical indicators on Salesforce's weekly chart, several critical price levels warrant attention from investors. These levels are crucial for monitoring potential further declines and identifying key areas of resistance.
A significant support level to observe is around the $225 mark. This area aligns with a long-standing trendline that has connected numerous peaks and troughs on the chart from May 2023 through August of the current year. Should the stock fall below this threshold, it could indicate a continuation of selling pressure.
Furthermore, if selling intensifies past the $225 support, the stock might revisit a lower support level at $200. This psychological round number has historically seen considerable trading activity between March and October 2023, suggesting it could act as a strong entry point for some investors. This price point also corresponds to a downside price target derived from the stock's downtrend observed between May and August, projected from the recent countertrend rally's peak.
In the event of a stock recovery, the price's reaction to the $267 area will be particularly telling. This level represents a horizontal resistance line that connects various price actions, including the December 2023 high. Investors who acquired shares at lower prices might consider this an opportune exit point. A sustained break above this level could pave the way for Salesforce shares to ascend towards the $290 mark. This higher price point is characterized by a confluence of resistance, including the 50-week moving average and two distinct peaks formed in May 2024 and May 2025, suggesting a formidable barrier for upward momentum.