Salesforce Inc. (NYSE:CRM) shares traded lower on Friday, weighed down by a broader sell-off in enterprise software stocks. Market volatility also persisted following the midterm election results as investors continued to assess the evolving political landscape.
• Salesforce stock is showing weakness. What’s pulling CRM shares down?
Despite the weakness in Salesforce shares, broader markets remained higher, with the Nasdaq gaining 2.51% and the S&P 500 advancing 1.08%.
The downward move followed an S&P Global Ratings action on Wednesday, when it lowered its issuer credit rating on Salesforce to “A” from “A+” citing higher net debt from recent acquisitions and a $25 billion debt-funded stock repurchase program.
Credit Rating Downgrade
S&P Global Ratings noted that Salesforce’s capital allocation priorities reflect a higher tolerance for leverage. The rating agency highlighted recent deals including Braze for $5.7 billion, Fin for $3.6 billion and Informatica for $9.5 billion. S&P stated, “We believe the company’s desire to optimize leverage will increase the risk that its net debt to EBITDA will continue to rise.”
Outlook Remains Stable
S&P Global Ratings assigned a stable outlook, projecting Salesforce will keep net leverage below 2.5 times while holding its market position. The agency reported Salesforce generated $3.9 billion of Agentforce and Data360 annual recurring revenue in the second quarter of fiscal 2027, with Agentforce annual recurring revenue reaching $1.5 billion.
Technical Analysis
CRM at $216.63 is trading 8.3% below its 20-day SMA ($236.30) and 9.6% below its 50-day SMA ($239.56), which keeps the near-term trend tilted lower until price can reclaim those levels. At the same time, it’s still 3.6% above the 100-day SMA ($209.22) and 9.3% above the 200-day SMA ($198.23), so the longer-term uptrend structure hasn’t fully broken.
The moving-average backdrop is mixed: the 20-day SMA is below the 50-day SMA (bearish), but the 50-day SMA remains above the 200-day SMA after the Golden Cross in September, which is typically a longer-term constructive signal. Traders will likely treat this as a “pullback within a bigger base” as long as the stock holds above the 200-day area and avoids a deeper breakdown.
- Key Resistance: $252.50 — Rebound area that can act as an overhead ceiling, sitting above the 50-day/20-day zone where sellers have recently had the advantage.
- Key Support: $190 — Nearby downside level that lines up as a prior demand zone and sits above the 200-day SMA ($198.23), making it a key “line in the sand” if weakness continues
CRM Stock Price Activity: Salesforce shares were down 3.94% at $213.64 at the time of publication on Friday, according to Benzinga Pro data.
Photo: NYCStock / Shutterstock.com
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