Would You Still Hold Salesforce Stock If It Fell Another 30%?
Salesforce (CRM) stock is down 16.4% in 21 trading days. The recent slide reflects renewed concerns around intense AI competition and decelerating organic growth, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Salesforce stands today.
- Size: Salesforce is a $176 Bil company with $40 Bil in revenue currently trading at $185.16.
- Fundamentals: Last 12 month revenue growth of 8.4% and operating margin of 22.0%.
- Liquidity: Has Debt to Equity ratio of 0.06 and Cash to Assets ratio of 0.12
- Valuation: Salesforce stock is currently trading at P/E multiple of 24.3 and P/EBIT multiple of 19.8
- Has returned (median) 48.4% within a year following sharp dips since 2010. See CRM Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell CRM Stock
That brings us to the key consideration for investors worried about this fall: how resilient is CRM stock if markets turn south? This is where our downturn resilience framework comes in. Suppose CRM stock falls another 20-30% to $130 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- CRM stock fell 58.6% from a high of $309.96 on 8 November 2021 to $128.27 on 16 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 March 2024
- Since then, the stock increased to a high of $367.87 on 4 December 2024 , and currently trades at $185.16
| CRM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.6% | -25.4% |
| Time to Full Recovery | 441 days | 464 days |
2020 Covid Pandemic
- CRM stock fell 35.7% from a high of $193.36 on 20 February 2020 to $124.30 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 6 July 2020
| CRM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -35.7% | -33.9% |
| Time to Full Recovery | 112 days | 148 days |
2018 Correction
- CRM stock fell 24.8% from a high of $160.43 on 27 September 2018 to $120.67 on 20 November 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 12 February 2019
| CRM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -24.8% | -19.8% |
| Time to Full Recovery | 84 days | 120 days |
2008 Global Financial Crisis
- CRM stock fell 70.5% from a high of $18.61 on 23 June 2008 to $5.49 on 19 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 December 2009
| CRM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -70.5% | -56.8% |
| Time to Full Recovery | 405 days | 1,480 days |
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