According to CNBC, Bank of America just lowered its price target on Salesforce from $325 to $305 per share ahead of their December 3rd earnings, though they maintained a buy rating. Deutsche Bank expects an “uneventful” quarter but kept their $340 target and buy rating. Meanwhile, Goldman Sachs is crushing it in mergers and acquisitions – they’ve captured 34% of the $3.8 trillion in global M&A deals announced this year, up from 28% last year. The investment bank just scored the advisory role on Merck’s $9.2 billion takeover of Cidara Therapeutics and is set to book a record $110 million fee from Electronic Arts’ $55 billion take-private deal. Salesforce shares have dropped over 29% year-to-date while Goldman Sachs has surged nearly 35%.
Salesforce reality check
Here’s the thing about Salesforce – the analysts might be maintaining their buy ratings, but Jim Cramer’s actually sounding the alarm. He called himself “depressed about Salesforce” and raised a crucial point about generative AI. Basically, Salesforce operates on a seat-based pricing model, and AI might actually cannibalize that core business rather than complement it. The company’s talking about $60 billion in revenue by 2030, but that’s a lifetime away in Wall Street terms. When a stock drops nearly 30% in a year while the broader market’s been strong, you’ve got to wonder what’s really going on behind the scenes. The low expectations that Bank of America mentions might be more of a red flag than a buying opportunity.
Goldman deal machine
Now Goldman Sachs is a completely different story. They’re not just participating in the M&A recovery – they’re dominating it. A 34% market share in global deal value is absolutely massive, especially when you consider how many competitors are fighting for those same fees. The Electronic Arts deal alone will net them $110 million, which is just insane money for advisory work. And look – this isn’t accidental. Goldman has been positioning itself for this exact moment, focusing on high-profile transactions that generate both headlines and huge fees. The Merck-Cidara deal just adds to their incredible run. When you’re on track for your best M&A year since 2001, you’re doing something very right in a very competitive field.
The bigger picture
What’s really interesting here is how these two stories represent completely different investment theses playing out. Salesforce was supposed to be this unstoppable software giant, but they’re facing real structural challenges from AI disruption. Meanwhile, Goldman was written off by many during the 2022 banking slump, but their core investment banking division is proving incredibly resilient. The stock performances tell you everything – Goldman up 35%, Salesforce down 29%. Sometimes the market gets it right, and sometimes the obvious growth story isn’t actually the one that delivers. I think we’re seeing that play out in real time here.
