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Sprout Social Inc (NASDAQ:SPT), a leading provider of social media management tools, has seen its stock price touch a 52-week low, reaching $19.04. According to InvestingPro data, the company maintains impressive gross profit margins of 77.5% and achieved revenue growth of 21.7% in the last twelve months. This latest price level reflects a significant downturn from the company's previous performance, with the stock experiencing a stark 1-year change, plummeting by -64.04%. Investors have been cautious as the broader market grapples with economic headwinds, leading to a reevaluation of tech stocks that had previously enjoyed a bullish run. Sprout Social's current position marks a critical juncture for the company as it navigates through a challenging period for tech-centric businesses. However, InvestingPro analysis indicates the stock is currently oversold, with 7 analysts recently revising their earnings expectations upward. For deeper insights into SPT's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Sprout Social Inc. has seen several adjustments in analyst ratings and price targets following its latest earnings reports. The company reported fourth-quarter revenue that met consensus estimates, though growth slowed significantly compared to previous quarters. This has prompted analysts like Allan Verkhovski from Scotiabank (TSX:BNS) to lower the price target to $25, citing reduced fiscal year 2025 revenue guidance. Similarly, Stifel analysts adjusted their price target to $34, maintaining a Buy rating but noting cautious first-quarter 2025 expectations. Cantor Fitzgerald also revised its price target to $38, maintaining an Overweight rating and adjusting financial estimates to reflect a more conservative growth outlook.
KeyBanc has maintained its Underweight rating with a $23 price target, expressing skepticism about the company's near-term stock performance due to disappointing 2025 revenue guidance. Goldman Sachs also reduced its price target to $29, reflecting a cautious stance until clear indicators of growth improvement emerge. Despite the challenges, Sprout Social has shown strong profitability and improvements in key performance metrics like gross retention and enterprise segment growth. The company continues to invest in product development and market strategies, which analysts believe could stabilize and potentially improve its financial performance over time.
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