Customer relationship management solutions provider Salesforce (CRM) has agreed to buy California-based startup Tenyx, which develops artificial intelligence (AI)-enabled voice solutions for enhanced customer interactions. Tenyx’s innovative voice solutions will help CRM boost the capabilities of its Agentforce Service Agent platform. This platform helps customers to build AI agents for different use cases with efficiency and cost effectiveness.
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Salesforce Is Growing its Focus on AI
The Tenyx acquisition is expected to be completed in CRM’s fiscal third quarter, ending October 31, 2024, subject to closing conditions. Tenyx’s co-founders, CEO Itamar Arel and CTO Adam Earle, will join Salesforce along with their team.
The AI landscape is getting increasingly competitive, with big tech companies entering into several areas where AI can be deployed. Salesforce is also making huge investments to enhance its AI offerings through Einstein. The company also has a generative AI chatbot, Einstein GPT, that enables users to create content, gain insights, and get a deep understanding of a topic based on the user’s prompts.
Insights from TipRanks’ Bulls Say, Bears Say Tool
Amid Salesforce’s increased AI focus and the recent Q2 FY25 beat, analysts have mixed opinions on CRM stock. According to TipRanks’ Bulls Say, Bears Say tool, Bulls are encouraged by the healthy increase in the customer base for CRM’s Data Cloud segment and growing adjusted operating income. Also, bullish analysts are highly optimistic about CRM’s AI agent development platform, Agentforce.
On the contrary, Bears are worried about the departure of CFO Amy Weaver, who boasts a superb track record of dealing with restructurings. Moreover, they are cautious about slowing year-over-year revenue growth rates and a sluggish demand environment.
Is Salesforce a Buy, Sell, or Hold?
Despite CRM’s upbeat Q2 results, Wall Street is cautiously optimistic about Salesforce stock’s trajectory as the overall demand environment remains dull. On TipRanks, CRM stock has a Moderate Buy consensus rating based on 26 Buys, eight Holds, and one Sell rating. The average Salesforce price target of $305.37 implies 23.1% upside potential from current levels. CRM shares have declined 5.5% so far this year.
