N※N

Goldman Sachs Remains Bullish on Salesforce Despite Market Sell-Off

  //science-technology.news-articles.net/content/2 .. llish-on-salesforce-despite-market-sell-off.html
  Published in Science and Technology on Wednesday, February 11th 2026 at 12:11 GMT by CNBC
      Locales: New York, UNITED STATES

New York, NY - February 11, 2026 - Despite a recent market-wide sell-off impacting software stocks, Goldman Sachs remains steadfastly bullish on Salesforce (CRM), reiterating a 'Buy' rating and a $330 price target. This endorsement comes as Salesforce shares have experienced a decline of over 17% year-to-date, mirroring a broader trend of investor rotation away from growth stocks. However, Goldman Sachs analysts, led by Keith Weiss, argue that Salesforce's inherent strengths position it as relatively insulated from further downward pressure.

The current market turbulence stems from a shift in investor sentiment, favoring value stocks over the high-growth, often high-valuation, tech companies that dominated the past decade. Rising interest rates and persistent economic uncertainty are contributing factors, prompting investors to seek stability and proven profitability. Salesforce, while undeniably a growth stock, possesses characteristics that distinguish it from some of its more vulnerable peers, according to Goldman's assessment.

Diversified Revenue Streams and Subscription Stability

The cornerstone of Goldman's confidence lies in Salesforce's robust and diversified revenue streams. Unlike companies reliant on a single product or market segment, Salesforce boasts a broad portfolio of cloud-based services, encompassing customer relationship management (CRM), sales, service, marketing, commerce, and more. Crucially, a significant portion of this revenue is derived from subscription-based models. This recurring revenue provides a level of predictability and resilience, especially in an uncertain economic climate. Subscription revenue isn't subject to the volatile purchasing cycles of one-time sales, offering a more stable foundation for future growth.

The Power of the Salesforce Ecosystem

Beyond revenue diversification, Goldman analysts emphasize the "powerful ecosystem" that Salesforce has cultivated. This ecosystem isn't just about the products themselves; it's about the AppExchange marketplace, the thriving developer community, and the integrations with countless other business applications. This network effect - where the value of the platform increases with each new user and integration - creates a significant competitive advantage, making it difficult for rivals to displace Salesforce. Companies become deeply integrated into the Salesforce architecture, raising the switching costs and fostering long-term customer relationships.

Acquisitions as a Growth Engine

Salesforce's history demonstrates a proactive approach to growth through strategic acquisitions. Past deals, such as the acquisition of Tableau (data analytics) and Slack (collaboration), have demonstrably expanded Salesforce's capabilities and market reach. Goldman Sachs believes this acquisition strategy will continue to be a key driver of growth, allowing Salesforce to enter new markets and enhance its existing offerings. The company's significant cash reserves provide the financial flexibility to pursue further acquisitions when attractive opportunities arise.

Riding the AI Wave

A particularly compelling aspect of Goldman's thesis is Salesforce's potential to capitalize on the burgeoning field of artificial intelligence (AI). The company has been aggressively integrating AI capabilities into its platform, with features like Einstein AI providing predictive analytics, automated workflows, and personalized customer experiences. Goldman analysts believe Salesforce is "uniquely positioned" to benefit from the AI wave, as its vast customer data and established cloud infrastructure provide a solid foundation for AI-powered innovation. Salesforce's AI initiatives are not merely add-ons; they are becoming integral to the core functionality of its products, enhancing their value and differentiation. The company's Data Cloud is designed to unify customer data, making it more accessible and valuable for AI applications.

Current Market Conditions and Future Outlook

Despite the positive outlook, Goldman acknowledges the headwinds facing Salesforce. The broader economic uncertainty and the investor preference for value stocks continue to weigh on the share price. However, the firm maintains that these factors are temporary and that Salesforce's fundamental strengths will ultimately prevail. The $330 price target represents a potential upside of over 25% from the current trading price of approximately $262 (as of February 11, 2026). This suggests that Goldman believes the market is currently undervaluing Salesforce's long-term potential.

While market volatility is expected to continue, Goldman Sachs' reaffirmation of its 'Buy' rating provides a strong signal of confidence in Salesforce's ability to navigate the current challenges and deliver sustained growth in the years to come. Investors are closely watching to see if Salesforce can live up to these expectations and regain its position as a leading growth stock.