CRM Stock Plunges -12% In 6-Day Spree On Sector-Wide AI Anxiety
Salesforce (CRM) – a customer relationship management platform delivering connected experiences worldwide – hit 6-day losing streak, with cumulative losses over this period amounting to a -12%. The company market cap has crashed by about $31 Bil over the last 6 days, and currently stands at $221 Bil.
The stock has YTD (year-to-date) return of 11.8% compared to 1.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Slide?
[1] Sector-Wide AI Monetization Fears
- Salesforce Stock Near Crucial Support – Buy Signal?
- High Margins, 39% Discount: Buy Salesforce Stock Now
- With Strong Cash Flow, Salesforce Stock Poised to Rise?
- Is Salesforce Stock A Buy After Recent Decline?
- With Salesforce Stock Sliding, Have You Assessed The Risk?
- How to Get Paid to Buy CRM at a Steep Discount
- Oppenheimer Downgrade of Peer Adobe
- Fears of New Agentic AI Replacing SaaS Platforms
- Impact: Sharp 7% Single-Day Price Drop, Contagion of Caution Across Software Stocks
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in CRM stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced (For details, see Buy or Sell CRM).
But here is the real interesting point.
You are reading about this -12% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for CRM stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | CRM | S&P 500 |
|---|---|---|
| 1D | -2.5% | 0.3% |
| 6D (Current Streak) | -12.2% | 0.3% |
| 1M (21D) | -8.3% | 1.9% |
| 3M (63D) | -1.1% | 4.1% |
| YTD 2026 | -11.8% | 1.4% |
| 2025 | -20.2% | 16.4% |
| 2024 | 27.8% | 23.3% |
| 2023 | 98.5% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: CRM Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 113 S&P constituents with 3 days or more of consecutive gains and 47 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 32 | 20 |
| 4D | 38 | 14 |
| 5D | 5 | 7 |
| 6D | 34 | 5 |
| 7D or more | 4 | 1 |
| Total >=3 D | 113 | 47 |
Key Financials for Salesforce (CRM)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $34.9 Bil | $37.9 Bil |
| Operating Income | $6.0 Bil | $7.7 Bil |
| Net Income | $4.1 Bil | $6.2 Bil |
Last 2 Fiscal Quarters:
| Metric | 2026 FQ2 | 2026 FQ3 |
|---|---|---|
| Revenues | $10.2 Bil | $10.3 Bil |
| Operating Income | $2.3 Bil | $2.4 Bil |
| Net Income | $1.9 Bil | $2.1 Bil |
The losing streak CRM stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.