With a market cap of $245 billion, Salesforce, Inc. (CRM) is the world’s leading provider of cloud-based Customer Relationship Management (CRM) software. It helps businesses of all sizes engage customers through cloud, mobile, social, IoT, and AI-driven solutions. The San Francisco, California-based company’s offerings include Agentforce, Data Cloud, Industries AI, Salesforce Starter, Slack, Tableau, and advanced analytics tools supporting sales, service, marketing, and commerce operations.

Companies worth more than $200 billion are generally labeled as “mega-cap” stocks and Salesforce fits this criterion perfectly. Its dominant CRM market share, strong brand, and extensive, integrated product suite establish its market leadership. It leads in AI innovation with Einstein and Agentforce, has a vast ecosystem and serves a large customer base. 

Despite its strengths, shares of the cloud giant declined 30.6% from its 52-week high of $369. Shares of Salesforce have dipped 4% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 11.9% rise over the same time frame.

CRM is down 23.4% on a YTD basis, lagging behind $NASX’s 11.1% rise. Moreover, shares of Salesforce have dropped 1.1% over the past 52 weeks, trailing $NASX’s 22% return over the same time frame.

CRM stock has been trading below its 50-day moving average since the end of May. In addition, the stock has fallen below its 200-day moving average since early March, reinforcing a bearish trend. 

CRM shares dropped 3.3% in the trading session after the release of its Q1 results on May 28. The company has continued to observe healthy growth in subscription and service revenues, leading to a 7.6% year-over-year growth in overall topline to $9.8 billion. Meanwhile, its adjusted EPS grew by a much more modest 5.7% year-over-year to $2.58.

CRM has underperformed its rival, Intuit Inc. (INTU). Shares of Intuit have increased 8.1% over the past 52 weeks and 6.1% on a YTD basis. 

Despite Salesforce’s weak performance, analysts remain very confident about its prospects. CRM stock has a consensus rating of “Strong Buy” from the 50 analysts covering the stock. Its mean price target of $345.15 indicates potential for an upswing of 34.7% from the current market prices.