Stock market today: S&P 500 rides Apple-led tech rally to close higher
Sprout Social Inc (NASDAQ:SPT)’s stock reached a new 52-week low, hitting 18.47 USD, marking a 9.63% decline just in the past week. According to InvestingPro analysis, the company maintains strong gross profit margins of 77.6% and holds more cash than debt on its balance sheet. This milestone highlights a significant downturn for the company, as its stock has experienced a substantial 50.15% decline over the past year. While the social media management software provider has faced various challenges in the market, InvestingPro data shows 7 analysts have revised their earnings upwards for the upcoming period, and the company is expected to turn profitable this year. Get access to 8 more exclusive InvestingPro Tips for SPT and comprehensive analysis in the Pro Research Report. The recent low underscores the volatility and competitive pressures within the tech sector, which have impacted Sprout Social’s performance and investor confidence. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading below its intrinsic value, suggesting potential opportunity despite current market sentiment.
In other recent news, Sprout Social Inc. reported strong financial results for the first quarter of 2025, with a 13% increase in total revenue year-over-year, reaching $109.3 million. The company also achieved a record non-GAAP operating margin of 11.5%. Despite slightly missing the revenue forecast of $110.14 million, the overall financial performance was robust, with a 72% increase in non-GAAP free cash flow. Oppenheimer adjusted its price target for Sprout Social to $32 from $38 but maintained an Outperform rating, noting record margins and cash generation as positives, despite concerns over deceleration in business growth. Needham reaffirmed a Buy rating on Sprout Social, highlighting strong customer feedback and the company’s value proposition within the social media marketing industry. Cantor Fitzgerald initiated coverage of Sprout Social with a Neutral rating, citing the company’s market share gains and potential growth opportunities from its recent acquisition of Tagger Influencer Marketing management. These developments suggest that Sprout Social is well-positioned in the social media management and social commerce markets, with continued emphasis on enterprise solutions and strategic partnerships.
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