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Why Salesforce Stock Slumped on Tuesday

The Motley Fool·
Why Salesforce Stock Slumped on Tuesday

Salesforce shares fell over 2% on Tuesday as part of a broader software sector selloff triggered by IBM's weak earnings guidance. IBM CEO Arvind Krishna attributed the underperformance to customers shifting technology spending from software to hardware (servers and storage) due to AI infrastructure buildout and anticipated price increases. This trend poses headwinds for software companies like Salesforce despite their historical strength.

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