Why I'm Still Not Buying Salesforce Stock
The Motley Fool
by newsfeedback@fool.com (Daniel Sparks)February 24, 2026
AI-Generated Deep Dive Summary
Salesforce (NYSE: CRM) shares have faced pressure in early 2026 despite the company’s strong performance. While some investors might be tempted to buy the stock ahead of its upcoming earnings report, which could potentially deliver positive news, there are long-term concerns that make it a less obvious choice for purchase. The company’s heavy reliance on stock-based compensation relative to its growth and the rapid changes in the software landscape driven by artificial intelligence (AI) pose significant risks. These factors make it challenging to predict sustained profit margins and pricing power, which are key considerations for investors.
Salesforce has consistently shown impressive business performance, with a strong focus on enterprise software solutions. Its dominance in customer relationship management (CRM) and its ability to adapt to market trends have contributed to its success over the years. However, the heavy use of stock-based compensation has raised concerns among some analysts. This practice can dilute shareholder value over time, especially if it continues at a pace that outpaces the company’s growth. Investors must weigh the benefits of Salesforce’s performance against the potential long-term costs associated with such compensation practices.
The rise of AI in the software industry is another factor complicating the outlook for Salesforce and similar companies. While AI presents opportunities to enhance products and services, it also introduces uncertainty into the market. The rapid evolution of technology can disrupt traditional business models and make it difficult to forecast future profitability. For Salesforce, this means that while it continues to innovate, the unpredictability of AI’s impact on its margins and pricing power could lead to volatility in its stock.
For investors, understanding these risks is crucial. While Salesforce remains a leader in its field, the combination of heavy stock-based compensation and the uncertainties surrounding AI adoption makes it a less straightforward investment decision. Those considering Salesforce stock should carefully evaluate whether these factors align with their long-term financial goals. The company’s ability to navigate these challenges will likely play a significant role in determining its future performance.
In conclusion, while Salesforce has demonstrated strong growth and
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Originally published on The Motley Fool on 2/24/2026