At least Matthew McConaughey got out of the rain.
The actor appears in a series of commercials for Salesforce (CRM) , including one where McConaughey is seated at a restaurant’s outdoor patio in the pouring rain because a booking app without an AI agent handled his preferences.
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It was looking bad for the star of “The Wolf of Wall Street,” “True Detective” and “The Lincoln Lawyer,” but fortunately fellow actor Woody Harrelson offers McConaughey a seat at his much drier table across the street.
While McConaughey escaped the rotten weather, analysts sees dark clouds on the horizon for the software sector, a list that includes such names as Salesforce, data analytics software company Snowflake (SNOW) and e-commerce giant Amazon (AMZN) .
DA Davidson analyst Gil Luria lowered the firm’s price target on Salesforce to $250 from $275 and affirmed a neutral rating on the shares. He pared his price target on Snowflake to $200 from $225 and maintained a buy rating, according to The Fly.
The price target revisions are part of a broader research note updating estimates within the firm’s coverage of the software group.
Software and services from Salesforce and Snowflake both sit in the cloud and focus on data management. Salesforce is primarily a customer relationship management platform, while Snowflake is a data warehouse that offers scalable and secure data storage for analytics.
DA Davidson: Weaker economic growth ahead
DA Davidson said that it was now assuming a base case of one or two quarters of negative GDP in the US this year, which would translate to lower growth and has already translated to lower valuations.
The firm noted that regardless of how the current tariff regime plays out, it sees consumer activity and corporate investment slowing, at least for the next couple of quarters.
The tech sector was excluded from President Donald Trump’s sweeping tariff agenda, but Commerce Secretary Howard Lutnick said the plan to exempt electronic devices — like smartphones, iPhones and laptops — from tariffs was a temporary reprieve and these products would face separate levies.
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In addition, the Trump administration is reportedly kicking off investigations into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors on national security grounds, Reuters reported, citing notices posted to the Federal Register.
DA Davidson also cut its price target on Amazon to $230 from $280 and kept a buy rating on the shares.
Amazon is reportedly reaching out directly to sellers for input on how Trump’s tariffs are affecting their businesses, suggesting the e-commerce giant is gathering data as sellers rethink pricing, inventory and more, according to Modern Retail.
Analyst cites dense fog in current economy
Meanwhile, Wedbush analysts were also pulling back on their forecasts due to tariff concerns and sagging consumer confidence.
“In recent weeks, significant uncertainty has been introduced to the economy given ongoing macro concerns, potential tariff implications, and weaker consumer confidence levels both in the US and internationally,” the firm said in an April 15 note about the internet sector.
Wedbush said the tech-heavy Nasdaq was down about 13% year-to-date and the dollar had depreciated since management teams last provided guidance, “implying a potential tailwind to first-half 2025 results for several global companies under our coverage.”
Early first-quarter earnings reports from retailers contemplate a more cautious consumer in the US, and certain travel operators have pulled full-year guidance, reflecting a high degree of uncertainty, the firm said,
“Notably, recent corporate commentary has been consistent with the neutral / negative sentiment we observed in our latest consumer internet and digital advertising surveys,” Wedbush said.
Related: Analysts reboot Amazon stock price targets
The firm said that it was broadly reducing 2025 estimates and price targets, “reflecting limited visibility into current economic conditions, and capturing the potential implications of a weaker demand environment.”
“We will continue to monitor the situation and revise estimates further as we hear from management teams in the coming weeks to gain better clarity than the current dense fog,” Wedbush analysts said.
Darrell Cronk, president of Wells Fargo Investment Institute, said that equity prices started the week on a high note as the countertrend rally was holding with limited news over the weekend and Monday.
“We believe the combined weight of universal, reciprocal, retaliatory, and sector-specific tariffs ultimately will decide between recession and no recession but that the final tariff menu remains unsettled,” Cronk said in a research note.
The analyst said the firm saw this as an opportunity for long-term investors to add exposure to high-quality U.S. large-capitalization and midcap stocks, and the communication services, energy, financials, and information technology sectors.
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