CRM News Report — 2026-02-12

Overview

Sources Breakdown

Key Themes Today

1. Broad Software Sector Sell-off and AI Impact

• Salesforce.com (CRM) closed at $185, marking a -4.37% move from the previous day, falling more than the broader market.
• The software sell-off resumed, with the iShares Tech-Expanded Software Sector ETF (NYSE:IGV) experiencing a slump.
• Anthropic's Claude Cowork AI tool sparked a massive sell-off in SaaS stocks, erasing nearly $1 trillion from the sector due to fears of an "AI takeover."
• Despite the downturn, Morgan Stanley analysts believe the "AI-fueled software meltdown is overblown" and some software stocks are trading at a more than 50% discount to their fair value.

2. Salesforce's Strategic AI Focus and Workforce Restructuring

• Salesforce is cutting fewer than 1,000 roles across marketing, product, data, and Agentforce related teams as it sharpens its AI-first focus.
• The company is reshaping its leadership with six new executive appointments across key areas including Agentforce and Slack, aiming to align with its AI strategy.
• Salesforce Ventures led a $6 million Series A funding round for Hubbl Technologies, an "intelligence layer for the agentic era," to accelerate its Intelligence Platform development.

3. Intensifying Competitive Landscape in CRM and AI Software

• A new AI sales startup, Monaco, launched by former Founders Fund VC Sam Blond and backed by names like the Collison brothers and Garry Tan, aims to "upend Salesforce" with its AI-native all-in-one CRM system.
• Competitor ServiceNow (NOW) is experiencing a product surge with offerings like Now Assist and Raptor, fueling big enterprise wins and AI-driven growth, setting up durable revenue expansion.
• Comparisons are being drawn between Salesforce and other AI software stocks like ServiceNow, highlighting the competitive pressures in the booming tech sector.

4. Valuation and Investment Outlook Amidst Sell-off

• Salesforce (CRM) received a "Strong Buy" rating from SeekingAlpha after a -45% selloff, noting its valuation is near a 10-year low on a P/S basis.
• Despite the recent decline to $185, some analysts, like Morgan Stanley, suggest that certain software stocks, potentially including CRM, could double in price this year due to being undervalued.

5. Internal and External Challenges

• Salesforce employees are urging CEO Marc Benioff to publicly condemn the recent actions of the U.S. Immigration and Customs Enforcement (ICE) and prohibit the use of Salesforce software by immigration agents, following a controversial joke by Benioff.
• The company's restructuring and job cuts are occurring as its AI push meets "weak CRM returns," indicating internal performance challenges.

Top Articles by Impact

Bullish

1. Salesforce: Buy The Fear In Enterprise SaaS Durability (SeekingAlpha)
2. This article provides a strong counter-narrative, rating CRM a "Strong Buy" due to its -45% selloff and near 10-year low P/S valuation, suggesting a significant buying opportunity.
3. The AI-fueled software meltdown is overblown (Yahoo)
4. This piece offers a sector-wide bullish perspective, arguing that fears of an AI takeover are exaggerated and that many software stocks are undervalued, which could benefit CRM.
5. Hubbl Technologies Raises $6M Series A Led by Salesforce Ventures (Yahoo)
6. This highlights Salesforce's strategic investment in an AI intelligence platform, signaling proactive moves to integrate and leverage AI for future growth.

Bearish

1. Here's Why Salesforce.com (CRM) Fell More Than Broader Market (Yahoo)
2. Directly reports CRM's significant -4.37% drop to $185, indicating immediate negative market sentiment and underperformance.
3. Salesforce Reshapes Workforce And Leadership As AI Push Meets Weak CRM Returns (Yahoo)
4. Details the cutting of fewer than 1,000 roles and "weak CRM returns," pointing to internal struggles and the immediate negative impact of restructuring.
5. Former Founders Fund VC Sam Blond launches AI sales startup to upend Salesforce (Yahoo)
6. Introduces a direct and aggressive competitive threat from a well-funded AI-native CRM startup explicitly aiming to displace Salesforce.
7. Salesforce Employees Demand CEO Marc Benioff Cut Ties With ICE After Controversial Joke Sparks Backlash: Report (Benzinga)
8. Reveals significant negative internal and public relations issues for Salesforce, potentially impacting employee morale and brand reputation.

Risk Factors

• Ongoing Software Sector Volatility: The "AI-fueled software meltdown" has erased nearly $1 trillion from SaaS stocks, and the sector sell-off resumed, indicating continued market uncertainty and potential for further declines.
• Intensified Competition: New AI-native CRM startups like Monaco are emerging with the explicit goal to "upend Salesforce," posing a significant threat to its market dominance.
• Internal Challenges and Negative PR: Workforce reductions of fewer than 1,000 roles due to "weak CRM returns" and employee demands for CEO Marc Benioff to cut ties with ICE create internal friction and negative public perception.

Cross-Source Consensus Signals

STRONG SIGNAL: Software Sector Sell-off and AI Impact: Multiple Yahoo articles (1, 2, 4, 5, 7, 11) and Benzinga (11) consistently report on the broader software market downturn, fears of AI's impact, and the resulting sell-off. MODERATE SIGNAL: Salesforce's AI Strategy and Restructuring: Yahoo articles (3, 12) detail Salesforce's workforce cuts, leadership changes, and strategic investments in AI-focused companies like Hubbl Technologies. WEAK SIGNAL: Emerging Competitive Threats: Yahoo (10) highlights a new AI-native CRM startup aiming to challenge Salesforce, while other articles (6, 9) mention strong performance from competitors like ServiceNow.

=== OVERALL SENTIMENT === BEARISH

=== ONE-LINE SUMMARY === Salesforce faces immediate headwinds from a broader software sector sell-off, internal restructuring due to "weak CRM returns," and new AI-native competitors, despite strategic AI investments and a "Strong Buy" rating from one analyst after a significant valuation drop.