Salesforce reported better-than-expected quarterly results, with both earnings and revenue exceeding forecasts.
However, the cloud software vendor's full-year guidance, which came in below expectations, has done little to reassure investors.
The market remains wary of the long-term impact of AI on traditional software models, with broader industry trends showing continued volatility.
The stock's muted reaction highlights a growing divide between short-term financial performance and long-term strategic concerns.
While Salesforce's results were solid, the broader sector is grappling with fears that AI could disrupt traditional software revenue streams.
This has led to a wave of top software executives leaving their roles to join AI-focused ventures, according to recent reports.