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Salesforce Hit With Second Downgrade in July, Shares Dip Over 1%

Salesforce (CRM) slid more than 1% in Tuesday trading after analysts slapped the stock with its second downgrade this month. The cloud-software giant is now under a microscope as Wall Street debates AI spending and enterprise demand.

OurAlpha

21 Jul 2026 — 3 min read

CRM shares fell 1.17% on Tuesday, marking the stock's second downgrade in July.

Salesforce (CRM) slid in Tuesday trading after analysts downgraded the stock for the second time this month. As of 10:30 a.m. ET, CRM was at $171.76, down 1.17% from the prior close.

As of 10:30 a.m. ET on July 21, CRM traded at $171.76, down $2.03 (-1.17%), with an intraday range of $166.93 to $172.425.
This marks the second analyst downgrade for CRM in July 2026.
According to CNBC, Wall Street analysts published a slate of major rating changes on Monday, July 20, including a downgrade for CRM.
CRM shares fell with the broader market on Monday, as the Dow Jones Industrial Average dropped more than 300 points.
The stock faces growing concerns over a broader slowdown in software sector growth.

Salesforce (CRM) extended its losses in Tuesday trading, sliding 1.17% to $171.76 as of 10:30 a.m. ET, down $2.03 from the prior close of $173.79. The stock opened at $167.06, hit a high of $172.425, and bottomed out at $166.93.^[^CNBC^]

The decline comes as CRM faces its second analyst downgrade this month. According to a CNBC report on Monday, July 20, Wall Street issued a series of major analyst rating changes that day, including a downgrade for CRM.^[^CNBC^]This marks the second such downgrade in July, reflecting growing uncertainty on the Street about the cloud-software giant's near-term outlook.

Second Downgrade in July Weighs on Sentiment

According to CNBC's Monday roundup of the biggest analyst calls, CRM was among the stocks downgraded that day.^[^CNBC^]The report did not name the specific firm or detail the price-target change, but noted it was CRM's second downgrade in July. The stock had already been cut once earlier in the month.

Downgrades typically reflect a reassessment of fundamentals, competitive dynamics, or valuation. For CRM, the market is increasingly focused on the payoff from its AI investments, intensifying competition in the CRM software space, and the risk of a slowdown in corporate IT spending.

Notably, the broader market was under pressure on Monday. According to CNBC, the Dow Jones Industrial Average fell more than 300 points that day.^[^CNBC^]CRM shares weakened in sympathy, setting the stage for further selling on Tuesday.

Price Action and Recent Context

CRM fell with the market on Monday and continued to slide on Tuesday, down 1.17% as of this writing. The stock opened at $167.06, below the prior close, then bounced to $172.425 before retreating — a sign of heavy fighting between bulls and bears at current levels.

CRM's recent moves are closely tied to the macro environment for software stocks. The market is watching the upcoming earnings season for clues on whether enterprise customers are still spending aggressively on AI and cloud. Meanwhile, the Fed's policy path and economic data (CPI, PPI) continue to influence growth-stock valuations, including CRM's.

Wall Street Diverges on Software vs. Semiconductors

Despite the double downgrade this month, not all of Wall Street is bearish. In the same CNBC report on July 20, Morgan Stanley reiterated its "overweight" ratings on Nvidia (NVDA) and Broadcom (AVGO), calling them the best plays in the current "memory cycle."^[^CNBC^]That underscores the stark divide: analysts remain bullish on AI-driven semiconductors, while the software sector faces a more complex assessment.

Also on July 20, Goldman Sachs initiated coverage on Versigent (VGNT) with a "buy" rating and a $48 price target, seeing 20% upside for the electrification company.^[^CNBC^]The divergence highlights how Wall Street is picking winners and losers across sectors.

For CRM, the next big catalyst is its upcoming quarterly earnings. Investors will zero in on revenue growth, margin trends, adoption of AI products like Einstein GPT, and management's guidance for the second half of the year. Any surprise could shift analyst sentiment.

Broader Market and What's Next

CRM's decline on Tuesday wasn't an isolated event. Other tech names also came under pressure. According to CNBC, Tesla (TSLA) is set to report Q2 earnings after the close on Wednesday, July 22. The stock is down 17% year-to-date in 2026, and options markets are pricing in an 8% swing post-earnings.^[^{24/7 Wall St.}^]The sensitivity around high-growth stocks heading into earnings season is palpable.

In semiconductors, Micron (MU) snapped a three-day losing streak on July 20 after its market cap fell below $1 trillion, as debate raged over how high memory-chip prices can go.^[^Barron's^]These dynamics form the backdrop for CRM's current trading environment.

Investors should watch for: additional analyst rating changes on CRM, any business updates from the company, and how the broader software sector performs during earnings season. As of this writing, CRM has not publicly commented on its second downgrade this month.