What Happened?
Shares of customer experience management platform Sprinklr (NYSE:CXM) fell 2.3% in the afternoon session after the major indices retreated particularly affecting technology stocks. The move comes as the wider market took a breather from a recent rally, with major indexes declining. The tech-heavy Nasdaq Composite was down 1.2%, creating headwinds for tech companies across the board. Sprinklr's decline appears to be tied to this general market sentiment rather than any specific company news. As of the previous day, analyst consensus for the stock was a "Hold," indicating a neutral stance before the market-wide dip.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sprinklr? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Sprinklr’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock dropped 3.1% on the news that a hotter-than-expected wholesale inflation report revived concerns about persistent inflation and tempered hopes for a Federal Reserve interest rate cut. The Producer Price Index (PPI) for July jumped 3.3% from a year earlier, surprising economists who had forecasted a 2.5% rate. This data revived concerns about persistent inflation and forced traders to reconsider the likelihood of a near-term interest rate cut by the Federal Reserve. High-growth technology stocks, which dominate the SaaS landscape, are particularly sensitive to interest rate fluctuations.
Sprinklr is up 1% since the beginning of the year, and at $8.63 per share, it is trading close to its 52-week high of $9.42 from March 2025. Investors who bought $1,000 worth of Sprinklr’s shares at the IPO in June 2021 would now be looking at an investment worth $490.06.
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