Salesforce Stock Slides on Downgrade to 'Underperform'

Salesforce's forays into artificial intelligence may have been ill-advised

Laura McCandless

Deputy Editor

Apr 21, 2025 at 11:10 AM

Cloud giant Salesforce Inc (NYSE:CRM) was last seen down 4.3% to trade at $236.60 today, after a downgrade from D.A. Davidson to "underperform" from "neutral," to go with a price-target cut to $200 from $250. The firm said the company's focus on artificial intelligence (AI) is leaving its core business neglected, and also removed CRM from its quality stock list.

Should these losses hold, CRM will close at its lowest level since June 2024. The 20-day moving average has pressured the shares lower since early-February, pushing them to a their current 29.3% year-to-date deficit.

Over in the options pits, calls have been much more popular than usual over the last 10 weeks. Salesforce stock's 50-day call/put volume ratio of 1.78 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 95% of readings from the past year.

The stock has tended to outperform options traders' volatility expectations over the past 12 months, per its Schaeffer's Volatility Scorecard (SVS) of 94 out of 100.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!