Shares of Salesforce Inc. (NYSE:CRM) took a significant hit, dropping as much as 16% in premarket trading following the company’s announcement of a slowdown in sales growth for the current quarter.

What Happened: At the time of writing, Salesforce stock was trading 16.1% lower in the Thursday pre-market at $228, according to Benzinga Pro. This comes after the stock closed at $271.62 the previous day. However, it dropped by up to 17% in after-hours trading on Wednesday following the release of its first-quarter earnings report.

Analysts had previously estimated a revenue of $9.35 billion. The company’s profit, excluding certain items, is expected to be around $2.35 per share, falling short of the average estimate of $2.40.

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CEO Marc Benioff remains positive about the company’s long-term potential, stating, “We're incredibly well positioned to help companies realize the promise of AI over the next decade.”

Additionally, a market analysis revealed that Salesforce’s competitors are also facing similar challenges, with budget scrutiny and elongated deal cycles becoming common issues in the industry. This context underscores the broader market dynamics affecting not just Salesforce but its peers as well.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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