Shares of Salesforce.com bucked Wall Street’s selling on Monday as the stock rose almost 5% for the day.
Buyers flocked to the AI-based relationship manager company, despite a sharp selloff in AI names. That selloff is contributed to news of a Chinese development company’s AI model’s (DeepSeek) lower costs and higher efficiency. That news is causing investors to question current valuations of the AI stock universe.
Salesforce.com is a leading cloud-based software company known for its customer relationship management (CRM) service. The company is known for its implementation of AI to enhance its services.
The company offers a comprehensive suite of applications focused on sales, customer service, marketing automation, analytics, and application development.
Those tools help businesses connect with their customers, streamline processes, and improve profitability by providing a unified view of every customer interaction across multiple channels.
Salesforce's platform also allows for extensive customization and integration with other services and applications, making it adaptable to various business needs.
Salesforce.com stock was profiled in Barron’s on Friday with a bullish outlook in the AI Service Industry. In addition to that story, the company’s stock is also benefiting from the potential that lower-priced AI systems could lower the company’s costs in the future.
Monday’s surge in the company’s stock puts above it back above its 50-day moving average. That trendline has been in a bullish patter since late September. Shares of Salesforce.com are more than 30% higher since that momentum shift in the bull’s favor.
Today’s price advance was slowed by the $350 price level. This price has acted as both support and resistance for Salesforce.com stock multiple times over the last three months.
Today’s move also initiated what is referred to as a “volatility rally”.
These rallies occur when a stock moves above its top Bollinger Band. Investors should expect that this volatility rally will push the stock back above $350 towards a target price of $400.