Shares of the cloud-based software company, Salesforce (NYSE: CRM) continued to slide in pre-market trading at the time of publishing on Thursday even as the company reported winning earnings but kept its full-year outlook left unchanged. This left investors disappointed.
The company’s CEO, Marc Benioff commented on its earnings call, “while the economy is not under our control, our margins are.” Benioff also spent considerable time on the call about CRM’s generative AI offerings.
Salesforce sees “tremendous appetite” for its generative AI products including Einstein GPT, Slack GPT, and Data Cloud. The company expects that its Einstein GPT could generate 1 trillion predictions for customers.
Benioff added, “Generative AI starts to reconceptualize every product, and we will start to develop not only extensions to all current products, but entirely new products as well.” The company is including Einstein GPT and Data Cloud into Customer 360 its complete suite of software products for now.
The company’s Data Cloud continues to be one of its fastest-growing products and as the AI revolution gets started, it plans to invest “$250M in our new AI venture fund to fuel startups developing our generative AI vision.”
Overall, analysts are cautiously optimistic about CRM stock with a Moderate Buy consensus rating based on 27 Buys, 11 Holds, and one Sell.
