Sprout Social Shares Decline 14% This Week, Extending Three-Year Losses to 74%

Sprout Social (NASDAQ: SPT) Investors face mounting losses as the company's stock drops 14% this week, amplifying a three-year decline of 74%. Shareholders have endured significant setbacks, with the share price plunging by nearly half over the past year and continuing to decline in recent weeks. Over the last seven days, Sprout Social's market value has decreased by approximately US$162 million, prompting an examination of whether this long-term downward trend stems from the company's financial fundamentals. Despite a 24% annual revenue growth over three years—outpacing many pre-profit firms—the stock has underperformed, declining about 20% annually during this period. This disconnect raises concerns about profitability and scalability, especially given the company's lack of recent profits. While analyst coverage suggests some visibility into future growth prospects, the company's persistent share price decline indicates underlying challenges. Notably, the broader market rose around 22% in the past year, whereas Sprout Social's shareholders experienced a 47% loss, highlighting the company's struggles relative to the market. Long-term investors should be cautious, as sustained s...