Salesforce (CRM) Fell Due to Heightened Investor Concerns

Diamond Hill Capital, an investment management company, released its “Select Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter, with the Russell 3000 Index surging 8%. At the same time, the portfolio underperformed the Russell 3000 Index, returning 4.98%. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its third-quarter 2025 investor letter, Diamond Hill Select Fund highlighted stocks such as Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. The one-month return of Salesforce, Inc. (NYSE:CRM) was 6.78%, and its shares lost 12.92% of their value over the last 52 weeks. On October 30, 2025, Salesforce, Inc. (NYSE:CRM) stock closed at $256.65 per share, with a market capitalization of $244.331 billion.

Diamond Hill Select Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its third quarter 2025 investor letter:

"Other bottom Q3 contributors included Salesforce, Inc. (NYSE:CRM), Antero Resources and SBA Communications. Customer relationship management (CRM) software company Salesforce seems to be facing higher customer attrition rates, fueling investors’ existing concerns about how AI may disrupt the company’s business."

Salesforce, Inc. (NYSE:CRM) is in the 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 121 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the second quarter, compared to 140 in the previous quarter. In the second quarter of 2026, Salesforce, Inc. (NYSE:CRM) reported revenue of $10.25 billion, reflecting an increase of 10% year over year and 9% in constant currency. While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Salesforce, Inc. (NYSE:CRM) and shared the list of best stocks to buy according to Citadel LLC. Salesforce, Inc. (NYSE:CRM) was a material detractor to Vulcan Value Partners' performance in Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.