CRM, SNOW, WDAY Stocks Hit 52-Week Lows: What's Driving The Selloff?

• Software stocks were pressured after Anthropic announced new functionality in its Cowork platform, seen as a challenger to certain software products.
• WDAY dropped to a six-year low, and CRM hit a three-year low.
• Stocktwits sentiment CRM, SNOW, WDAY climbed higher amid the selloff and was ‘extremely bullish’ on Thursday.

Shares of Salesforce, Inc., Snowflake, Inc., and Workday, Inc. dropped to fresh multi-year lows on Thursday, triggered by new AI announcements from Anthropic.

Software heavyweight Microsoft, as well as key names Palantir, Intuit, Zscaler, and Snowflake, also suffered declines on a day that was positive for the broader market.

What's Driving CRM, SNOW, WDAY Lower?

Salesforce shares dropped nearly 3% to $170.85, its lowest level since March 2023. Shares have fallen for four days, cumulatively 9%, even as the market has ticked higher following the United States and Iran agreeing to a ceasefire.

Software stocks are unable to shake out the intense selling pressure. In recent months, concerns about stretched tech valuations were exacerbated by a string of AI launches from Anthropic, fanning worries that its tools might impact demand for certain niche software.

In January, Anthropic debuted its Claude Cowork platform, which is designed to integrate AI into enterprise workflows, enabling shared context, documents, and real-time collaboration around AI outputs. The company has steadily added capabilities geared towards coding, legal, cybersecurity and other tasks, in many cases overlapping with software solutions already in the market.

The iShares Expanded Tech Software ETF (IGV) got dumped hard again on Thursday, losing nearly 5% in the last two sessions. Amid weakness, Salesforce has launched an accelerated buyback plan for up to $25 billion, while board members David Kirk and Laura Alber purchased $500,000 in shares each last month.

Snowflake shares declined a whopping 13% to $132.24, their lowest level since August 2024. The stock is down 40% since the start of the year.

Last week, Benchmark initiated coverage on SNOW with a ‘Buy’ rating and $190 price target, projecting a 68% upside. As a top infrastructure pick, it meets key SaaS investment criteria, including technology leadership, high AI defensibility, a $500 billion-plus total addressable market, consistent beat-and-raise execution, and top-tier profitable growth targeting Rule of 50+, the research firm said.

Workday shares declined 5.1% to $137.84, their lowest level since March 2020. The stock has declined for four days straight, losing over 14%, and is down 47% since the start of the year.

In the past week, Citi lowered its price target on WDAY sharply to $148 from $247, while Rothschild lowered it to $210 from $270. The company's decelerating sales trends and uncertainty on future strategy following the change of CEO in January were weighing on the view, Rothschild said.

What Retail Traders Think About CRM, SNOW, WDAY?

Despite the sharp drop, retail sentiment for all three tickers has climbed in the last two days and was ‘extremely bullish’ on Thursday, as many traders see the multi-year lows as a premium opportunity to build exposure.

“$CRM Took a $250 share starter here. The AI narrative is way overblown. Tell me a Fortune 500 business that runs their entire CRM process through AI. The answer is none,” argued a trader. 

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