Headquartered in San Francisco, Salesforce, Inc. (CRM) is the market leader in providing on-demand CRM software for sales, marketing, customer service, and custom application development. With a market cap of $316.8 billion, it offers a technology platform for customers and developers to build and run business applications and helps companies connect with customers through cloud, mobile, social, Internet of Things (IoT), and artificial intelligence (AI).
Companies worth $200 billion or more are generally classified as “mega-cap stocks.” Salesforce's market cap exceeds the mega-cap threshold, highlighting its size, stability, and influence in the tech sector. Salesforce has revolutionized the CRM industry with its cloud-based platform, known for being affordable, intuitive, and highly versatile. The company is celebrated for its unmatched innovation and dedication to continuous improvement, consistently providing cutting-edge solutions to its clients.
The cloud giant hit its 52-week high of $318.71 in the last trading session. Moreover, shares of Salesforce have surged 48.5% over the past three months, outperforming the Technology Select Sector SPDR Fund’s (XLK)15% rise during the same time frame.
In the longer term, CRM is up 39.8% on a YTD basis, but the stock gained 46.8% over the past 52 weeks. By contrast, the XLK climbed 25.3% in 2024 and 31.5% over the past year.
CRM has recently traded above its 50-day and 200-day moving averages, indicating a bullish trend.
On December 3, CRM released its Q3 earnings results, and its shares jumped 11% in the next trading session. The company exceeded sales and adjusted operating income expectations. Despite some weaknesses in EPS, billings, and RPO, double-digit growth in the Sales and Service Cloud segments provided encouragement.
The standout achievement was driven by Salesforce's progress in AI, particularly with the launch of Agentforce, an AI-powered customer service tool that secured 200 deals, including one client deploying 10,000 agents in three days. Broader AI initiatives also thrived, with over 2,000 AI-related deals signed and $1 million-plus contracts tripling year over year.
Salesforce has been outpacing its main competitor, Adobe Inc. (ADBE), with shares of ADBE plunging 11.3% over the past 52 weeks and down 10.1% on a YTD basis.
Given CRM’s robust price performance, analysts are very optimistic about the stock’s potential. The stock has a consensus rating of “Strong Buy” from 44 analysts covering it, and it currently trades above its mean price target of $350.52. The Street-high target of $450 implies an upside potential of 22.3% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from BarchartThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
