Down More Than 30% This Year, Could Salesforce Be an Underrated Artificial Intelligence Stock to Buy Right Now?
Publish Date: 2026-05-28 16:26:00
Source Domain: www.theglobeandmail.com
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Better than Expected Q1 Results: Salesforce reported better-than-expected top and bottom lines in Q1, with revenue of $11.13 billion, slightly above analysts’ expectations of $11.05 billion. Adjusted per-share profit of $3.88 significantly exceeded the $3.12 expected by Wall Street.
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AI-powered Growth: The company’s Agentforce platform’s annual recurring revenue has surged by 205% year-over-year to $1.2 billion, showcasing significant growth driven by its AI capabilities.
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Stock at a Low Valuation: Salesforce’s stock is currently trading near its 52-week low, with a forward price-to-earnings multiple of 13, well below the S&P 500 average of 22, suggesting it may be undervalued.
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Guidance Unimpressive: Although the revenue guidance for the next quarter was within analysts’ expectations, the upper end of the range was slightly below what was anticipated, contributing to investor skepticism.
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Skepticism About AI Impact: Despite its promising AI-enabled growth, some analysts remain unconvinced about Salesforce’s ability to leverage AI for long-term growth, especially as the market may discover more alternatives powered by AI.
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Not on Top Stocks List: The Motley Fool Stock Advisor’s team did not select Salesforce among its top 10 picks for investors, focusing instead on stocks with potentially higher growth prospects.
These points reflect both the positive financial indicators and the underlying concerns about the stock’s valuation and AI-driven long-term prospects.
