Salesforce, Inc (CRM) shares fell again yesterday and set a new multi-year low. The stock is down 55% since the beginning of 2025.
The fall has tracked wider declines in software stocks, linked to concerns that AI could reduce demand for software. The article describes this reaction as potentially short term.
It reports technical analysis signals, saying the price has filled a gap from March 2023. It also says the stock touched a previous pivot area from October and November 2022.
The article states an 80% probability of a bounce based on the author’s factors. It also projects a possible upside target of $210 in the coming weeks.
Looking back to 2025, we saw Salesforce get crushed by over 55% as fears mounted that AI would make its software obsolete. That analysis correctly identified a major technical floor, leading to a powerful squeeze off the multi-year lows. The stock did indeed hit the $210 target and continued to rally through the end of last year.
The narrative has now shifted from AI being a threat to it being a massive growth driver. In its last earnings report, Salesforce noted that customers using its Einstein AI tools saw an average 25% increase in sales team productivity. This fundamental shift has supported the stock’s recovery from those 2025 lows.
Given the stock is now consolidating, derivative traders could look at selling out-of-the-money puts for the May expiration, such as the $265 strike. This strategy collects premium by betting that the extreme fear we saw last year will not return in the near term. Recent options data shows implied volatility has settled near 32%, which is still profitable for premium sellers.
Alternatively, for those expecting a continuation of the uptrend into the next earnings cycle, buying a call spread is a defined-risk way to play. For example, buying the June $290 call and selling the June $310 call positions for a move higher. This takes advantage of the market’s renewed confidence in legacy software’s ability to adapt.
