Salesforce Shares Drop Over 20 Percent in First Quarter
Salesforce shares declined more than 20 percent in early 2026, sparking investor fears that generative AI could disrupt the software-as-a-service business model.
Shares of Salesforce, Inc. dropped by 20 percent or more during the first quarter of 2026, contributing to a performance decline for the Artisan Value Fund. The stock decline reflects growing investor concerns that generative AI may disrupt the software-as-a-service (SaaS) model by reducing the necessity for software seats or enabling enterprises to build their own internal software solutions.
Artisan Partners addressed these fears in an investor letter, arguing against the notion of a "death of software." The investment management firm maintains that Salesforce remains a leading CRM provider with a deep integration into customer workflows that protects its economic moat. Artisan Partners attributes the stock's softness to a slowing macroeconomic environment rather than immediate AI disruption, which the firm believes will take years to unfold.
