Matt Frankel

For Salesforce to move down 35% from its 52-week high,

As far as tech stocks go, it's generally a low volatility name.

So that's a really big move.

There are solid bull and bear cases to be made when it comes to AI disrupting Salesforce's business.

I mean, on one hand, the company is still growing the top line by double digits, not by much, but 10% is still double digit growth and generating really strong cashflow.

Plus the AI related metrics have all been moving in the right direction.

Annual recurring revenue from the AgentForce platform is now $800 million.

Not a giant part of its revenue yet, but up 170% year over year.

Plus, and this is probably the most interesting statistic, over 60% of AgentForce and Data360 bookings in the most recent quarter came from Salesforce's existing customers, not from outside of the ecosystem.

So that indicates that it's using AI to expand its customer relationships.

It's not losing customers and churning them.

So on the other hand, the CRM business is growing at a pretty slow, just a single digit rate.

And it remains to be seen if the headwinds are going to be more powerful than the AI tailwinds.

Because like I mentioned, the AI part of the business is growing nice, but it's still a small part.

Right.

Management seems confident with an accelerated $25 billion buyback, but I'm going to channel my inner Tyler Crowe here and say that that also says that they can't find anything better to do with $25 billion than just buy back their own stock, which for a tech company that's supposed to be fast growing and leaning into AI is also kind of a little bit of a concern.

So I...

This is a long way to say that I think Salesforce will be relatively unscathed by the AI headwinds over the next few years.

But beyond that, there are legitimate questions.

Well...