Why Is Salesforce Stock Surging on Thursday?

Salesforce, Inc. (NYSE:CRM) stock is rising on Thursday, largely because investors are rotating back into established enterprise software stocks and away from debt-heavy AI infrastructure companies. The rally looks more like a sector rotation and rebound than a reaction to a major new announcement.

The Nasdaq is down 2.39% while the S&P 500 has shed 1.25% and Technology is the weakest sector on the day with a 3.20% drop.

• Salesforce stock is moving in positive territory. Why are CRM shares climbing?

Wall Street Reevaluates Software Value

Recent analyst moves have been largely positive. DA Davidson maintained a Neutral rating on Salesforce stock while raising its price target to $250. Cantor Fitzgerald maintained an Overweight rating with a $300 target on Wednesday. Bank of America Securities upgraded the stock to Buy and raised its price target to $285 on Oct. 12.

According to Benzinga, the consensus among 31 analysts is a Buy rating, with one strong buy, 22 buys, seven holds, and one sell. The average consensus price target stands at $277, implying an upside of 11.2%.

Braze Acquisition Strategic Fit

The current rebound follows market activity involving Braze, Inc. (NASDAQ:BRZE). On Tuesday, Braze disclosed a deal to be acquired by Salesforce for approximately $5.66 billion in enterprise value.

BTIG analyst Nick Altmann downgraded Braze from Buy to Neutral following the deal. Altmann noted that the transaction values Braze at approximately 5.3 times fiscal 2028 estimated sales, a valuation the analyst considers attractive for shareholders but one that leaves little room for competing bids.

Altmann views the transaction as a strategic fit for Salesforce, combining its Data 360 and Customer 360 platforms with Braze’s personalized, cross-channel engagement tools across mobile apps, email, web, SMS and WhatsApp. With Salesforce’s Marketing and Commerce segment reporting negative growth for three consecutive quarters, Braze’s approximately 25% growth rate and $900 million revenue run rate could help revive growth in the business.

Technical Analysis

CRM is trading firmly above its major moving averages, sitting 6% above the 20-day SMA ($234.73) and 25.2% above the 200-day SMA ($198.74), which keeps the intermediate trend pointed higher. The 20-day SMA is above the 50-day SMA (bullish), and the Golden Cross that triggered in September (50-day SMA above the 200-day SMA) continues to act as a longer-term "trend is up until proven otherwise" backdrop.

• Key Resistance: $268.50
• Key Support: $220.50

CRM Stock Price Activity: Salesforce shares were up 3.21% at $249.50 at the time of publication on Thursday, according to Benzinga Pro data.

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