In CRM’s case I don’t even look for rationality. The results are top and the outlook is the same. From what I saw, the market was possibly disappointed that the outlook was basically what was expected (it’s simply not better—the market keeps wanting more and more). We’ll probably have to get used to this: good isn’t good enough. The market wants to see a positive explosion every quarter.

In recent weeks, software/cloud stocks have generally taken a hit because the market is dealing with two things at once: weaker willingness from companies to increase IT budgets and an “AI reset” in how software will be sold and valued. According to reports from recent weeks, AI can eat into some of the “seats” (licenses) — and the market fears that kind of cannibalization. When an AI agent does the work of two people, a company may over time need fewer CRM users. For the traditional “per-user” model this is a structural nightmare. On the other hand, established players actually have the advantage of data and distribution, so I don’t see it as bleakly as the market does. Simply put — AI won’t damage the business if established companies deploy and monetize it well.