Sprout Social (NASDAQ:SPT) stock has been incredibly hot lately. SPT stock is up more than 30% in June alone, and nearly 100% year-to-date. But don’t chase the rally. Wait for a dip — if and when it comes — and then buy.
You have a long-term winner here with SPT stock. It has lots of potential, so if you can get in at the right time, it’ll be very worth it.
Social media is everything these days. And it has expanded well beyond only serving as a platform for communication. Social media is now how many people discover new products and services.
But, despite social media driving brand and product discovery for many companies, many companies don’t utilizes social media, or they don’t use it to its full potential.
Sprout Social aims to change that and enable businesses to easily leverage a social media to improve brand exposure and sales.
SPT Stock: Social Media Matters
Do you still use physical catalogs or peruse magazines daily? Probably not.
If you’re like most people, you’re discovering content through social media.
Roughly 4.14 billion people around the world are connected via social media. And with 80% of Gen Z and Millennial consumers reporting their shopping habits are influenced by social media, there’s plenty of opportunity here to capitalize on the role of social media in many people’s lives.
But it isn’t all fun and games.
Effective social media usage can benefit a business immensely, but negative social media interactions can be equally impactful in a bad way. With over half of US consumers saying they would boycott a brand due to a negative interaction on social media, brands can’t afford to slip up.
Brands benefit from having a good social media presence, but with great power comes great responsibility.
Social Media Is Crucial
If you are a direct-to-consumer brand and want to succeed in the modern era, you need to have a solid handle on social media.
For consumers, social media is easy. You think of something, or you see something, and you post it.
Social media can be difficult and complicated for businesses though. Instead of being a lot of fun, it’s a lot of work.
Platforms. Platforms Everywhere.
There are tons of platforms, an excess amount of posts and a lot of moving parts. Maintaining a cohesive presence online is especially tricky in light of all these moving parts.
In fact, brands often manage upwards of 10 or more different social profiles across different social networks. There’s Facebook, Twitter, LinkedIn, Instagram and the list goes on and on.
Each of these networks has different requirements for posts, and different kinds of posts succeed to varying degrees on different platforms.
Bottom Line on SPT Stock
Sprout Social transforms that complexity into an easy-to-use software platform that helps companies maintain that cohesiveness and thrive on social media with ease.
Their suite of social media management tools make the social media game easier, more rewarding and more valuable for brands.
Sprout Social’s main tools make it easy for brands to engage in conversations with its customers, publish streamlined content easily to numerous platforms, view sentiment and conversations regarding their brand and analyze various performance metrics.
These tools give brands everything they need to be extremely successful when it comes to social media marketing.
With plenty of businesses existing who have yet to take advantage of social media to its full extent, Sprout Social still has enormous growth potential.
So, if you’re looking to invest in a small technology company with second-to-none profit growth potential, wait for SPT stock to drop then buy in.
Sprout is but one of my top picks in the social media/digitainment world. Yes, long-term, SPT stock will score investors big returns, but it’s far from the only hypergrowth stock on my radar.
In fact, in my free e-letter, Hypergrowth Investing, I cover emerging megatrends and high-risk, high-reward stock picks each and every day. By becoming a subscriber, you’ll never have to pay a dime and will always get high-quality information on a number of market themes and picks that could make you a ton of money over the near- to long-term.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.