Sprout Social: Stock Rise Thanks to Canva Integration

The social media management company Sprout Social recently enjoyed a 2.8% increase in its stock after the analysis firm Needham renewed its buy recommendation and highlighted Sprout's new strategic partnership with the design platform Canva as a positive impetus. The cooperation between Sprout and Canva enables brands to transfer finished visual designs directly from Canva to Sprout's social media platform. This optimizes workflows and reduces errors. Needham maintained its target price of $32 and expressed confidence in the stabilization of Sprout's growth. The increased content creation on platforms like Canva enhances brand engagement, benefiting Sprout. The new feature receives positive feedback from early users, including FedEx, which reports significant time savings and increased efficiency in the social media area. After the initial increase, the shares settled at $14.42, which still represents a 2.8% gain compared to the previous closing price. Sprout Social's shares are proving to be volatile, with 23 movements of over 5% in the last twelve months. This illustrates that the market considers the news significant, but not a game changer for the company. The last notable price jump occurred the day before, when the stock gained 5.2% after the significant integration with Canva was announced. This feature simplifies the process for social media teams by directly transferring Canva designs as drafts onto the Sprout platform and reduces the need for content re-uploading. This efficiency boost is also highlighted by FedEx. Despite this recent gain, Sprout Social has declined by 53% since the beginning of the year and is trading at a price of $14.42, which is 60.2% below the 52-week high of $36.24. For investors who invested $1,000 in Sprout Social five years ago, the current value of the investment would be $429.13.