Sprout Social (SPT) Fell Following Reduced Guidance

3 weeks ago 9

Soumya Eswaran

Mon, December 1, 2025 astatine 6:40 AM CST 3 min read

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equities deed a grounds precocious successful the 3rd quarter, fueled by continued gains successful exertion and falling enslaved yields. Easing tariff rhetoric and renewed AI infrastructure investments boosted ample tech stocks. In mid-September U.S. Federal Reserve lowered rates by 25 ground points. Against this backdrop, the money returned -1.78% (net) compared to the Russell 2500 Growth Index’s 10.73% return. Sector positioning and the avoidance of names that bash not conscionable the firm’s strict concern subject led to the underperformance of the money successful the quarter. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Meridian Growth Fund highlighted stocks specified arsenic Sprout Social, Inc. (NASDAQ:SPT). Sprout Social, Inc. (NASDAQ:SPT) designs, develops, and operates a web-based societal media absorption platform. The one-month instrumentality of Sprout Social, Inc. (NASDAQ:SPT) was -4.04%, and its shares mislaid 68.30% of their worth implicit the past 52 weeks. On November 28, 2025, Sprout Social, Inc. (NASDAQ:SPT) banal closed astatine $9.97 per share, with a marketplace capitalization of $590.118 million.

Meridian Growth Fund stated the pursuing regarding Sprout Social, Inc. (NASDAQ:SPT) successful its 3rd 4th 2025 capitalist letter:

"Sprout Social, Inc. (NASDAQ:SPT) provides a starring level that enables businesses to manage, monitor, and optimize their societal media presence. The company’s level is recognized for its intuitive design, easiness of deployment, and nonstop integrations crossed large societal networks—features that underpin its competitory advantage. Despite delivering results up of expectations, the banal underperformed during the play pursuing different simplification successful guardant guidance. In a marketplace situation progressively rewarding a “beat and raise” pattern, this guidance reset overshadowed different coagulated execution. We judge the resulting pullback was excessive, fixed Sprout’s durable double-digit maturation trajectory, expanding borderline profile, and compelling valuation. With a beardown competitory presumption and increasing relevance to modern enterprises, we utilized the stock terms weakness arsenic an accidental to modestly summation our presumption during the period."

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Sprout Social, Inc. (NASDAQ:SPT) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge money portfolios held Sprout Social, Inc. (NASDAQ:SPT) astatine the extremity of the 3rd quarter, which was 29 successful the erstwhile quarter. In the 3rd 4th of 2025, Sprout Social, Inc. (NASDAQ:SPT) reported gross of $115.6 million, representing a 13% year-over-year growth. While we admit the imaginable of Sprout Social, Inc. (NASDAQ:SPT) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.