Wells Fargo Raises Salesforce’s Price Target. Can $1.5 Billion Agentforce ARR Drive Growth?

Grail's Galleri test, which screens for 50 cancers, is under FDA review for approval. A major study failed to prove it detects later-stage cancers, causing skepticism among doctors. Grail's stock dropped 50% on the news but has since rebounded. FDA approval could lead to insurance coverage and impact competitors like Caris Life Sciences and Guardant Health.

Enterprise software stocks rose on Wednesday, with Atlassian (TEAM), Monday.com (MNDY), Salesforce (CRM), and ServiceNow (NOW) up 2-3%. Atlassian announced accelerated U.S. federal cloud investments. The iShares Expanded Tech-Software Sector ETF (IGV) gained 1% while the Invesco QQQ Trust (QQQ) fell 0.88%. Rising long-term Treasury yields typically pressure such stocks, making the rally unusual.

Salesforce's share count dropped 15% to 821 million in a year due to a $25 billion buyback, funded by debt. Total debt rose to $42.38 billion, cutting fiscal 2027 free cash flow growth outlook in half. CEO Marc Benioff suggested selling the Anthropic stake to repay debt, but current investments total $11.32 billion, less than total debt.

Salesforce (CRM) launched AIforce at Dreamforce 2026, an open AI layer compatible with multiple systems. CEO Benioff criticized Microsoft's (MSFT) Copilot, calling it 'the new Clippy.' CRM set a $63B revenue target for 2030. Shares rose 34% in a month, closing at $255.65. Stifel raised its price target to $300, citing new AI revenue channels.

Salesforce launched Koa, a proprietary CRM-focused AI model co-developed with Nvidia, aiming to reduce reliance on third-party models like Claude. Koa scored 8.6 on CRM Bench, trailing Claude and GPT-5.5 but surpassing GPT-4.1. The move is driven by data security, cost savings, and competitive positioning. Salesforce also introduced AIforce, integrating AI with its CRM system. Nvidia supports Koa's development, promoting 'enterprise sovereign AI.'

Salesforce experienced a global outage during its Dreamforce conference, affecting logins and services for several hours. The outage, caused by an internal login service bottleneck, occurred as the company showcased its AI capabilities. Salesforce stock fell 3% post-outage, despite positive analyst price targets and strong revenue growth. The incident raised concerns about operational risks amid the company's AI expansion.