**Margin Improvement Play:** The company has strong underlying business fundamentals that have been masked by poor capital allocation. Management can likely cut $20-30M annually through AI automation in R&D and sales. Combined with likely share buybacks at current depressed valuations (1.4-1.5x EV/Revenue), this could drive 100% upside in base case, 150%+ in bull case as margins expand 300-400bps and the multiple re-rates toward peer average of 2.5-3.0x.
**Acquisition Target:** Adobe just acquired Semrush (similar B2B marketing SaaS company) for $12/share at 3.6x EV/Revenue – a 78% premium. SPT has comparable metrics (100%+ net retention, sticky enterprise customers, similar revenue profile) but trades at a significant discount. This suggests 60-70% upside from a strategic acquisition at similar multiples, potentially 100%+ if multiple buyers compete. Adobe would be a logical acquirer to pair with Semrush and diversify beyond creative software.
**Insider Buying Catalyst:** Revenue growth is accelerating again (first time in 8 quarters). Insiders filed trading plans in August with a 90-day waiting period, meaning purchases should start imminently and continue on a recurring basis. This signals management confidence and likely front-runs further appreciation toward $15+ by Q4 earnings in February.
paladin258 on
Of all the tickers in the world, why would you choose SPT?? 🤯
OP is betting on IPO open price to hold. Did you zoom out and noticed it has been selling off since 2021. It has lost 93% since ATH, and no reason for it to bounce just because it lost that much. It can actually go another 90% down and maybe it’ll trade below $1 in a year.
Never buy stocks thats making new lows. It’s gonna keep dipping and it’ll be painful for you to wait for it to recover. Maybe few days, maybe few years, maybe never!
All the best to you! Here’s a monthly chart for you. Salvage while you can and rather buy VOO
14 Comments
So buy put on SPT us what you’re saying.
why?
Respect, im in
[removed]
https://preview.redd.it/55rnryxmbl2g1.jpeg?width=897&format=pjpg&auto=webp&s=65c2f8e36a2a4ba879a332ed4da222dec4efe694
I am also in.
Crazy you own 1/555 of the company or .0018%.
Guess I’ll inverse, because you a dummy.
**Three-part bull case for Sprout Social (SPT):**
**Margin Improvement Play:** The company has strong underlying business fundamentals that have been masked by poor capital allocation. Management can likely cut $20-30M annually through AI automation in R&D and sales. Combined with likely share buybacks at current depressed valuations (1.4-1.5x EV/Revenue), this could drive 100% upside in base case, 150%+ in bull case as margins expand 300-400bps and the multiple re-rates toward peer average of 2.5-3.0x.
**Acquisition Target:** Adobe just acquired Semrush (similar B2B marketing SaaS company) for $12/share at 3.6x EV/Revenue – a 78% premium. SPT has comparable metrics (100%+ net retention, sticky enterprise customers, similar revenue profile) but trades at a significant discount. This suggests 60-70% upside from a strategic acquisition at similar multiples, potentially 100%+ if multiple buyers compete. Adobe would be a logical acquirer to pair with Semrush and diversify beyond creative software.
**Insider Buying Catalyst:** Revenue growth is accelerating again (first time in 8 quarters). Insiders filed trading plans in August with a 90-day waiting period, meaning purchases should start imminently and continue on a recurring basis. This signals management confidence and likely front-runs further appreciation toward $15+ by Q4 earnings in February.
Of all the tickers in the world, why would you choose SPT?? 🤯
OP is betting on IPO open price to hold. Did you zoom out and noticed it has been selling off since 2021. It has lost 93% since ATH, and no reason for it to bounce just because it lost that much. It can actually go another 90% down and maybe it’ll trade below $1 in a year.
Never buy stocks thats making new lows. It’s gonna keep dipping and it’ll be painful for you to wait for it to recover. Maybe few days, maybe few years, maybe never!
All the best to you! Here’s a monthly chart for you. Salvage while you can and rather buy VOO
https://preview.redd.it/8gtpxha2fl2g1.jpeg?width=1290&format=pjpg&auto=webp&s=3aebe259a4f6c779d269af29895cfc8fd7a56538
Damn. Holding until you lose $999,975 is rough
Dawg just invest this in meta and get a guaranteed 40% return in a year
Average down harder
What’s the thesis here?
Surely this is a typo and you meant to buy SPY?