TLDR
- Salesforce shares fell to $216.67, marking a new 52-week low on Wednesday
- Company announced $5.6 billion 10-year U.S. Army contract through Computable Insights subsidiary
- Stock down 33.65% in past year, trading below all major moving averages
- RSI at 35.79 approaches oversold levels with MACD showing bearish momentum
- Analysts remain optimistic citing Agentforce business reaching $500 million in ARR
Salesforce Inc shares slid to a 52-week low of $216.67 on Wednesday. The drop came even after the company announced a massive government contract win.
The tech giant secured a $5.6 billion, 10-year deal with the U.S. Army. The Indefinite Delivery Indefinite Quantity contract will be executed by Computable Insights LLC, Salesforce’s national security-focused subsidiary.
Under the agreement, the Army and Department of War gain access to Salesforce’s cloud platform. The tools will support decision-making and operations for service members, civilian employees, partners and military families.
The contract promises to slash procurement timelines from months to just days. It also provides predictable pricing and simplified contracting processes for rapid innovation scaling.
Bearish Technical Signals Dominate
Despite the contract news, Salesforce stock has tumbled 33.65% over 12 months. The stock now sits below all key moving averages, painting a bearish technical picture.
Shares trade 8.4% below the 20-day SMA, 8.3% under the 50-day SMA and 11.1% beneath the 200-day SMA. This positioning suggests sustained downward momentum.
The Relative Strength Index stands at 35.79, edging toward oversold territory. While currently neutral, this level indicates mounting selling pressure that could trigger a bounce if conditions deteriorate further.
MACD remains below its signal line, confirming bearish momentum. The indicator shows buyers lack control as downward pressure persists.
A death cross formed in April when the 50-day SMA dropped below the 200-day SMA. This pattern typically foreshadows extended downtrends and remains a concern for traders.
Support and Resistance Levels
Key support sits at $222.00, while resistance holds at $267.50. A break below support could accelerate losses. Conversely, a move above resistance might signal a trend reversal.
The stock trades near its 52-week low of $218.96. This proximity raises questions about whether shares can find stable footing or face additional declines.
Over the past year, Salesforce shares have dropped 34.69%. This extended weakness underscores the challenges facing the company.
Financial Strength and Analyst Views
Salesforce maintains gross profit margins of 77.73% and holds a “GOOD” financial health rating. Management has been actively repurchasing shares.
The company recently issued 139,574 restricted stock units to employees from recent acquisitions including Apromore, Spindle AI and Informatica.
Wall Street analysts maintain bullish outlooks. Citizens repeated a Market Outperform rating, pointing to Agentforce business performance exceeding $500 million in Annual Recurring Revenue.
KeyBanc kept an Overweight rating, citing Life Sciences Cloud opportunities as Veeva competition intensifies. Wolfe Research affirmed an Outperform rating based on AI integration within the Agentforce platform.
The stock closed Wednesday near its yearly low despite the Army contract announcement.
