Salesforce Stock (CRM) Drops on Plans for Largest-Ever Bond Sale to Fund $50B Buyback

Salesforce CRM -2.27% ▼ is preparing one of the largest debt offerings as it looks to raise as much as $25 billion to help fund its recently announced $50 billion share buyback program, Bloomberg reported. CRM stock was down 2.2% in Tuesday’s trading session.

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The company is targeting a U.S. bond offering of at least $20 billion, with the potential to reach $25 billion depending on market conditions. The notes could be sold as early as this week, though timing may shift. Salesforce has tapped major banks, including JPMorgan JPM +0.02% ▲ , Bank of America BAC +1.96% ▲ , Barclays BCS +2.64% ▲ , Citigroup C +3.14% ▲ , and Wells Fargo WFC +0.22% ▲ , to manage the offering.

The stock repurchase plan was announced alongside a stronger‑than‑expected sales forecast and a 5.8% dividend increase. With this buyback, Salesforce aims to show confidence in its long‑term growth.

However, Moody’s Ratings called the debt‑funded buyback a “material shift in financial policy,” pointing to Salesforce’s higher tolerance for leverage. The agency downgraded the company’s credit rating to A2, while S&P Global SPGI -2.08% ▼ cut its outlook to negative.

Tech Giants Tap Debt Markets

It is worth noting that Salesforce’s planned offering comes as other tech giants are also tapping the bond market. For instance, Amazon AMZN +0.46% ▲ is reportedly preparing to raise between $37 and $42 billion across dollar‑ and euro‑denominated notes to fund AI infrastructure. According to Bloomberg, Amazon is seeing massive investor demand, with orders reportedly reaching about $126 billion.

These moves reflect both strong investor appetite for high‑grade corporate debt and the enormous capital demands of the AI arms race.

Is CRM a Buy, Sell, or Hold?

Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 27 Buys, eight Holds, and one Sell assigned in the last three months. At $264.35, the average Salesforce stock price target implies a 36.03% upside potential.

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