Salesforce shares dropped 20% on Thursday, marking the stock’s worst day in nearly two decades. The last time it experienced a comparable decline was on July 4, 2004, when shares fell 27% shortly after the company went public.The decline followed Salesforce’s fiscal first-quarter report on Wednesday, which missed Wall Street’s revenue estimates for the first time since 2006. The cloud software company reported an 11% increase in revenue to $9.13 billion, falling short of the $9.17 billion expected by analysts. Additionally, Salesforce’s second-quarter guidance disappointed investors, with an expected adjusted earnings per share of $2.34 to $2.36 on revenue between $9.2 billion and $9.25 billion. Analysts had anticipated $2.40 in adjusted earnings per share on $9.37 billion in revenue.Citi analysts attributed the poor performance to broader macroeconomic challenges, execution issues, and changes to Salesforce’s go-to-market strategy. They lowered their price target for the stock from $323 to $260, noting the need for evidence of improved growth or momentum in areas like Data Cloud and generative AI before becoming more optimistic.Goldman Sachs analysts, however, maintained a buy rating, viewing Salesforce as a “high-quality software franchise.” They emphasized the potential for growth driven by easing interest rates, the end of the election cycle, and advancements in generative artificial intelligence. They described Salesforce as an “under-appreciated Gen-AI winner” with potential for significant margin expansion.Morgan Stanley analysts echoed a mixed sentiment, acknowledging that the disappointing quarter shook confidence in Salesforce’s near-term growth. Nonetheless, they maintained an overweight rating, suggesting the impacts are more cyclical than secular and expressing belief in the company’s potential benefits from generative AI in the coming year.