Sprinklr Stock Is a Chance to Cash In on a $1 Trillion Market

Sprinklr stock goes public next week. The Sprinklr IPO is expected to sell 19 million shares priced between $18 and $20 a pop. That will value the company at close to $5 billion.

That's not too shabby for a company with just under $340 million in sales last year.

While it's not the flashiest company, it could be a silent winner in the enterprise software market set to double from $500 billion to $1 trillion by the end of the decade.

If you miss out on profits from this trend, don't let it be because you found it "boring."

Sprinklr is backed by the private equity firm Hellman and Friedman, which invested $200 million in the company last year at a $2.7 billion valuation. The firm will have a 25% voting interest in the stock when the IPO closes.

Morgan Stanley, JP Morgan, Citigroup, Barclays, and Wells Fargo Securities are the underwriters on the IPO.

Let's go deeper into why Sprinklr stock should be on your radar ahead of its IPO.

What Is Sprinklr?

Sprinklr provides enterprise software that helps clients with marketing, advertising, and customer engagement efforts.

CEO and Founder Ragy Thomas notes that forms of communication with customers have changed dramatically over the last few years. Companies do not communicate with customers by just one or two mediums anymore. Instead, they add things like TikTok, Google Messaging, and Apple Business Chat to the traditional mail, e-mail, telephone, and print channels.

Ragy points out that communication is no longer one-to-one but many-to-many, with billions of people connected to each other.

This new world of communication has changed customers' expectations as a result. They are in touch with each other and can communicate across different platforms, sharing their experiences when interacting with companies.

Sprinklr offers a product it calls unified customer experience management, or Unified-CMX, to help companies communicate across all platforms. The software uses artificial intelligence to analyze an enormous amount of customer experience data to constantly improve the customer's experience when interacting with a company.

How Sprinklr Is Doing

Sprinklr has a large and growing list of 1,179 customers, including more than 50% of the Fortune 100. The list includes companies like McDonald's Corp. (NYSE: MCD), Microsoft Corp. (NASDAQ: MSFT), L'Oréal, and Verizon Communications Inc. (NASDAQ: VZ).

Sprinklr is global, with customers in more than 60 countries that use the platform in more than 50 languages.

Sprinklr believes that the world of business has changed permanently. Customers are more in control than they have ever been before. These customers are also moving online at a much faster pace than anyone expected, thanks largely to the pandemic.

Most of the more than 30 platforms that businesses and customers communicate on today did not exist just 15 years ago. The platforms everyone will be using in a decade probably have not been developed yet. The number of platforms will continue to increase in the future.

The amount of data generated by these platforms will be huge.

Sprinklr's software can analyze all that data and use artificial intelligence to develop ways for companies to digitally transform and move forward in new and innovative ways.

Where Sprinklr Stock Is Headed

Sprinklr believes that we are still in the early days of customers adopting the Unified-CMX model for its customers. It thinks it can disrupt the markets for traditional ways of managing customer data, including CRM, Enterprise Resource Planning, and Human Capital Management systems.

It thinks those markets present Sprinklr with a potential market worth over $50 billion for its subscription-based software.


Our chief investment strategist says 2021 could be a gold mine for Americans - and these 5 stocks are "screaming buys."


Our chief investment strategist says 2021 could be a gold mine for Americans - and these 5 stocks are "screaming buys."

Sprinklr has spent more than a decade developing the powerful artificial intelligence platform that drives the Unified-CMX software. It is the first-ever purpose-built customer experience AI engine. The AI engine can process millions of unstructured and structured data points collected from a wide range of channels.

The AI system has a data set of over 100 million data points that drive more than 1,200 AI models with a high degree of accuracy. Using the data, the models can deliver billions of predictions a day to help their customers.

Should You Buy Sprinklr Stock?

Early indications say that this will be a well-received IPO.

Sprinklr has an extensive roster of well-known companies in its client list. If you have an account with one of the underwriting firms, it doesn't hurt to ask about the possibility of getting shares in the offering.

If you can't get shares on the offering, we think it will be smart to wait a few days before trying to buy in the aftermarket. Sprinklr does have a strong business, and the potential market could be huge, but the stock is richly priced.

The initial valuation will be more than 10 times revenue. Bottom-line profits are probably still years away for Sprinklr, so the stock could be volatile after the first day's trading.

The customer experience management market is one to watch over the next decade. And Sprinklr is well-positioned to thrive with its current clientele.

Three Stocks Even Better Than Sprinklr

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