Why Software Company Sprinklr Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
Sprinklr, Inc. (NYSE:CXM) shares are down 23.6% after reporting mixed Q1 FY25 results. Despite beating sales and EPS estimates, the company cut its FY25 revenue outlook and provided weak Q2 guidance. Additionally, Sprinklr announced Trac Pham as co-CEO and an expanded partnership with Reddit, Inc. (NYSE:RDDT). Multiple analysts downgraded the stock and lowered price targets.
June 06, 2024 | 1:26 pm
News sentiment analysis
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NEGATIVE IMPACT
Sprinklr shares fell 23.6% after mixed Q1 FY25 results. Despite beating sales and EPS estimates, the company cut its FY25 revenue outlook and provided weak Q2 guidance. The announcement of Trac Pham as co-CEO and an expanded partnership with Reddit did not offset the negative sentiment. Multiple analysts downgraded the stock and lowered price targets.
The significant drop in share price is due to the company's reduced FY25 revenue outlook and weak Q2 guidance, which overshadowed the positive earnings beat. The co-CEO announcement and partnership with Reddit were not enough to counteract the negative sentiment. Multiple analyst downgrades further contributed to the decline.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Reddit, Inc. announced an expanded strategic partnership with Sprinklr, making Sprinklr the first official partner for Reddit's Advertising API. This partnership could enhance Reddit's advertising capabilities and data integration.
The expanded partnership with Sprinklr could positively impact Reddit by enhancing its advertising capabilities and data integration. However, the immediate impact on Reddit's stock price may be limited as the news is more relevant to Sprinklr's operations.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50