Salesforce CRM shares fell on Tuesday after the software company announced an agreement to acquire artificial intelligence call-centre startup Cresta, extending a series of acquisitions aimed at strengthening its AI capabilities.

The stock declined around 1.65% to $222.45, making it one of the weakest performers in the Dow Jones Industrial Average.

The latest announcement comes as investors question whether Salesforce’s growing acquisition spending will deliver sufficient returns amid concerns about AI disruption across the software industry.

Salesforce did not disclose the financial terms of the Cresta transaction.

The deal is expected to close in the first quarter of fiscal 2028, which runs from February to April 2027, subject to customary closing conditions, including regulatory approvals.

The company’s shares have fallen around 12% this year, compared with a 3.76% decline in the iShares Expanded Tech-Software Sector ETF.

Salesforce expands its AI acquisition strategy

Cresta provides a voice-first operating system for customer experience, including AI agents designed to handle complex, high-volume customer calls.

Salesforce said the acquisition would strengthen its Agentforce and Service Cloud offerings by bringing customer interactions, conversations and outcomes together.

Kishan Chetan, executive vice president and general manager of Agentforce and Service Cloud at Salesforce, said voice interactions were among the most challenging areas of customer service.

He added that Cresta had developed voice agents capable of handling complex calls for some of the world’s largest brands.

The acquisition follows several other deals as Salesforce seeks to expand its AI capabilities across its software business.

In late October, the company agreed to acquire marketing software provider Braze in an all-cash transaction valued at approximately $5.7 billion.

It also agreed to acquire AI-powered analytics platform Loops last month.

Earlier acquisitions included the purchase of AI customer-service provider Fin for $3.6 billion, announced in June, and an agreement to acquire data management company Informatica for approximately $8 billion in May 2025.

The Informatica deal was intended to strengthen the data infrastructure supporting Salesforce’s AI products.

Acquisition spending raises questions on Wall Street

The growing number of transactions has not yet convinced all investors that Salesforce’s acquisition strategy is the right approach.

Some of the premiums paid for companies as Salesforce builds its AI portfolio have raised concerns on Wall Street.

The Cresta announcement came as the stock was on track to record its fourth consecutive session of losses.

Salesforce has pointed to acquisitions as a contributor to its revenue outlook.

In its fiscal second-quarter earnings report, the company forecast fiscal 2027 revenue growth of 11% to 12%, with Informatica expected to contribute slightly more than three percentage points.

The company also raised its full-year revenue forecast by $200 million, partly reflecting expected contributions from pending acquisitions, including Contentful and Fin.

However, the share-price performance suggests investors remain cautious about the scale and timing of the benefits from these transactions.

AI disruption adds to pressure on software stocks

Salesforce’s acquisition strategy is unfolding against a difficult backdrop for software companies.

The so-called SaaSpocalypse, referring to concerns that artificial intelligence could disrupt traditional software business models, has weighed on investor sentiment across the sector.

That uncertainty may be making it harder for Salesforce to gain market support, even as it invests in companies designed to strengthen its AI offerings.

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SpaceX shares SPCX advanced on Tuesday as investors continued to react to reports that Elon Musk’s company is exploring a deal with EchoStar to acquire Boost Mobile or gain access to its wireless network.

SpaceX shares rose around 3% to approximately $141, extending gains after closing Monday at $136.37.

The rally follows a Washington Post report that the company has held discussions with EchoStar, the parent of discount wireless carrier Boost Mobile, about a possible arrangement.

Musk reportedly met EchoStar Chairman Charlie Ergen last month to discuss the potential deal.

Neither company has publicly confirmed an agreement, and the talks could result in either an acquisition of Boost Mobile or access to its existing network arrangements.

Boost Mobile could accelerate Starlink’s wireless ambitions

A deal with Boost Mobile could give SpaceX an established customer base and a quicker route into the US wireless market as it develops Starlink Mobile, a service combining satellite connectivity with traditional cellular networks.

EchoStar had approximately 7.38 million wireless customers at the end of the second quarter across its Boost Mobile and Gen Mobile businesses.

Boost relies on network capacity leased from AT&T and T-Mobile rather than operating an extensive nationwide cellular network of its own.

SpaceX has been trying to secure access to terrestrial networks to complement its growing satellite constellation.

T-Mobile CEO Srini Gopalan has publicly ruled out granting SpaceX mobile virtual network operator (MVNO) status on its network.

A potential Boost arrangement could therefore offer an alternative route, although transferring existing network agreements may require approval from AT&T and T-Mobile.

AI rebound support shares

Broader enthusiasm around artificial intelligence and next-generation infrastructure has also provided support to technology stocks.

The Nasdaq Composite Index advanced 1%, with several major firms involved in the AI trade up on Tuesday.

SpaceX has been expanding beyond its traditional launch and satellite businesses, with ambitions in AI computing and wireless connectivity.

The potential Boost Mobile arrangement would add another revenue opportunity by allowing the company to combine Starlink’s satellite network with ground-based cellular coverage.

The move could also help address limitations of satellite-based connectivity, particularly in densely populated areas and locations where indoor coverage remains challenging.

Analysts remain bullish on SpaceX

Analyst expectations remain broadly positive, with consensus price targets suggesting substantial upside from recent trading levels.

According to TipRanks, the average analyst price target stands at approximately $250.34, based on coverage from 35 analysts.

Needham analyst Ryan Koontz reiterated a Buy rating with a $250 price target on October 27.

He said SpaceX’s third-quarter results significantly exceeded expectations and demonstrated the benefits of its vertically integrated business model.

Morgan Stanley analyst Adam Jonas also maintained an Overweight rating with a $300 price target, viewing SpaceX as more than just a launch and satellite connectivity company.

EchoStar shares have also gained following the reports, with a 2.75% rise on Tuesday to add on Monday’s increase.

However, the potential deal faces commercial and contractual hurdles, particularly because Boost relies on network agreements with rival carriers.

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Bloom Energy shares BE rose 10% in trading on Tuesday after the company announced a partnership with California Resources Corporation and its carbon management subsidiary, Carbon TerraVault, to evaluate the development of at least 1 gigawatt (GW) of solid-oxide fuel cell power generation combined with carbon capture and storage in California.

The stock gained following the announcement of a non-binding memorandum of understanding (MOU) on Monday evening.

The proposed projects could combine Bloom’s fuel cell technology with Carbon TerraVault’s carbon dioxide transportation and underground storage capabilities.

The agreement comes after a difficult period for the company’s shares, which had lost roughly 31% over the previous month.

A Barclays upgrade also supported sentiment, with the investment bank raising its rating on Bloom Energy to Overweight from Equal Weight and setting a price target of $289.

Bloom Energy and California Resources target 1 GW of capacity

Under the MOU, the companies will evaluate and seek to advance projects involving at least 1 GW of solid-oxide fuel cell power generation paired with carbon capture and storage.

Bloom will provide its fuel cell technology and work with third-party carbon capture technology providers.

Carbon TerraVault will handle CO2 transportation and permanent underground storage, while California Resources will contribute project management expertise.

The proposed projects could make up to 3 million metric tons of CO2 per year available for capture and storage.

The companies are considering developments in Central and Northern California.

The initiative includes both front-of-the-meter and behind-the-meter projects.

The former would connect to Carbon TerraVault’s California storage portfolio and target utility customers.

Behind-the-meter installations would provide on-site power to industrial users across California Resources’ Central Valley footprint.

Potential buyers of the electricity include utilities, community choice aggregators, municipalities and data centres.

Bloom’s chief commercial officer, Aman Joshi, said the company’s non-combustion technology could make carbon capture more efficient and economically viable at scale.

The company also highlighted its high-concentration CO2 exhaust stream as a factor that could improve the efficiency and cost-effectiveness of carbon capture.

Barclays upgrades Bloom Energy as demand outlook improves

Barclays upgraded Bloom Energy to Overweight from Equal Weight, setting a price target of $289.

The bank pointed to the company’s expanding production capacity, higher customer deposits and new supply commitments as signs that demand is increasing faster than previously expected.

Barclays said these developments could support an improved revenue outlook, although it also flagged potential pressure on free cash flow in the near term.

The upgrade follows a period of significant weakness in Bloom Energy shares, which had declined around 31% over the preceding month.

The new price target and improved rating offer a more positive assessment of the company’s prospects amid growing interest in fuel cell power generation.

Oppenheimer highlights partnership but notes uncertainty

Oppenheimer reiterated its Perform rating on Bloom Energy following the announcement.

The investment firm viewed the agreement as validation of the potential for fuel cell technology to deliver carbon capture alongside baseload power.

However, it noted that the MOU is non-binding and does not include specific financial commitments.

The distinction is important because the proposed 1 GW development remains at the evaluation stage rather than representing a confirmed order or construction commitment.

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Meta Platforms META shares gained more than 2% on Tuesday as the company attracted strong investor demand for its latest bond offering, despite growing concerns about the cost of Big Tech’s artificial intelligence investments.

Investors placed orders worth as much as $58 billion for Meta’s US dollar bond offering, which is expected to raise at least $15 billion, Bloomberg News reported, citing people familiar with the matter.

The order book was roughly four times the size of the proposed offering, compared with an average peak order-book ratio of 3.8 times for major US dollar technology bond deals this year.

The dollar offering forms the largest part of a broader fundraising effort expected to reach at least $20 billion. Meta is also preparing its first euro-denominated bond sale, which could begin as soon as Wednesday.

Meta offers higher yields to attract bond investors

The latest transaction marks Meta’s first high-grade bond offering since April, when it raised $25 billion.

That deal attracted peak investor demand of $96 billion.

However, the company is now having to offer more attractive borrowing terms to secure demand.

Pricing on its longest-dated notes, due in 2056, tightened from initial discussions to a yield premium of 2.2 percentage points above US Treasuries.

Despite the improvement, the premium remains almost 0.9 percentage points wider than that offered on a comparable Meta bond in April.

The proposed dollar bonds have maturities ranging from five to 30 years, while the euro-denominated notes are expected to include maturities extending to nearly 38 years.

Citigroup and Morgan Stanley are leading the offering.

The wider borrowing costs reflect a shift in investor sentiment towards major technology companies.

Big Tech bonds are trading at their largest yield premium to other investment-grade debt since 2003, while the cost of protecting several US technology companies against default has approached record levels.

AI spending drives borrowing across Big Tech

Meta’s fundraising comes amid a broader wave of debt issuance by companies investing heavily in artificial intelligence infrastructure.

Oracle raised $20 billion through a bond sale on Monday, while Alphabet secured €6 billion through a euro-denominated offering.

Microsoft also returned to the US investment-grade bond market last week with a $25 billion transaction.

These companies are raising capital to finance data centres, advanced semiconductors and other infrastructure required to support AI development.

A group of hyperscalers and so-called neocloud companies tracked by Bloomberg Intelligence is expected to invest nearly $4.5 trillion over the next three years.

Meta alone is forecast to spend more than $740 billion over the period.

The scale of these commitments has increased investor scrutiny of whether the companies can generate sufficient returns from their AI investments.

Meta combines debt and equity to fund AI ambitions

Alongside its debt offering, Meta has been raising capital through equity markets to support its spending plans.

The company last week priced $25 billion in common stock and raised another $12.5 billion through an offering of preferred shares.

It has also outlined plans to raise as much as $60 billion through an at-the-market share sale programme.

Meta’s financing efforts come as it expands its AI capabilities.

The company recently launched Muse Wonder, a new AI model that its leadership described as having frontier capabilities comparable to OpenAI’s ChatGPT and Anthropic’s Claude in coding and handling financial or legal questions.

However, the growing financing requirements have raised concerns about the company’s balance sheet.

S&P Global Ratings cut its outlook on Meta last week, citing pressure from elevated AI spending.

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Super Micro Computer is heading into its fiscal first-quarter earnings report with expectations for a sharp increase in revenue and profit, but investor concerns about AI spending and pressure on margins could complicate the market reaction.

The server maker is scheduled to report results after the market closes on Tuesday, November 3.

Analysts surveyed by FactSet expect adjusted earnings of $1.23 per share on revenue of $17.53 billion, compared with earnings of $0.35 per share and revenue of $5.02 billion in the same quarter last year.

The company has already indicated that revenue could exceed those expectations.

However, options pricing suggests traders are preparing for a potentially volatile session after the results.

Super Micro shares rebound ahead of earnings

Super Micro SMCI shares rose more than 4% to around $31.74 on Tuesday, attempting to recover after losing nearly 10% over the previous week.

The stock has gained 2.5% year to date, underperforming the S&P 500, which is up 10.17% over the same period.

The stock also remains 36% below its 52-week closing high of $50.17, reached on June 2.

The company benefits from demand for AI hardware as cloud providers expand data centre capacity to serve hyperscalers and AI laboratories.

Super Micro supplies server and storage solutions used in these facilities.

On October 20, the company issued preliminary results estimating quarterly revenue of between $18.5 billion and $19.5 billion.

That was above its previous forecast of $14.5 billion to $15.5 billion.

Still, the broader technology market has become more cautious about the scale of AI investment by large technology companies.

Intel’s shares fell 29% to $65.58 last Friday after the chipmaker reported mixed third-quarter results, adding to concerns about the sector.

Options market signals heightened volatility

Options expiring on November 6 imply that Super Micro shares could move approximately 12.51% in either direction following the earnings announcement.

Based on the current share price, that points to an implied trading range of roughly $27.70 to $35.62.

At-the-money implied volatility stood at 204.50%, nearly three times the stock’s historical volatility of 69.13%.

Trading activity showed a preference for calls.

The November 6 options chain recorded 39,882 call contracts traded, compared with 29,067 puts, producing a put/call volume ratio of 0.73.

The difference was wider in open interest, with 233,902 outstanding calls against 54,384 puts, resulting in a ratio of 0.23.

The $33 strike had the highest trading volume among near-term options, while the $36.50 call led in open interest.

The November 6 chain’s max pain level stood at $33, slightly above the share price. However, this measure should not be interpreted as a price target.

Margin concerns remain a risk

Beyond the headline revenue and earnings figures, investors will be watching the impact of component costs and pricing pressure on profitability.

BofA Securities analyst Ruplu Bhattacharya said the firm remained cautious about margins as the company’s product mix normalises.

He also cited pricing pressure in the AI server and rack market, rising component costs and the typically lower margins associated with large deals.

Bhattacharya rates Super Micro shares Underperform and has a $38 price target.

The earnings report will therefore test whether the company’s anticipated revenue growth can translate into results that satisfy investors.

With options pricing pointing to a substantial potential move, the market reaction may depend on both the reported figures and management’s commentary on margins.

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