Software stocks came roaring back in the third quarter as fears that AI would disrupt traditional business models faded, with Salesforce, Microsoft, Workday and Veeva among the biggest winners. CNBC's Jim Cramer sees more upside for software leaders including Salesforce and Microsoft, while warning that higher interest rates are the biggest risk heading into the new quarter.
Artificial intelligence (AI) is dismantling the competitive advantages that entire market segments have relied on for decades. Understanding where competitive moats are disappearing versus where they are being reinforced due to AI may be one of the most important questions that investors can ask right now.
Shares of Salesforce Inc (NYSE:CRM, XETRA:FOO) were up 3.2% on Wednesday after the company signed a definitive agreement to acquire Listen Labs, an AI-powered customer research and human simulation platform. Listen Labs' AI agents design studies, conduct in-depth research and synthesize insights, shrinking a process that typically takes months down to days.
Marc Benioff said that OpenAI's relationship with Microsoft prevented Salesforce from investing. Salesforce backed Anthropic and other AI startups instead.
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