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Fire and Brimstone: Investors Give Sprinklr a Sodomite Punishment (CXM)

Posted on June 30, 2022

If ever a company had its head in the clouds, it’s Sprinklr (NYSE:CXM).

The company offers what it calls a unified customer experience management (CXM) platform that essentially allows you – the customer – to be spied on more comprehensively.

That is, using artificial intelligence supplied by the spymasters at Sprinklr (and operating through the Google cloud), a company’s customer service, marketing and communications teams can be bound together the better to glean from your phone calls, live chat, messaging and emails, information that can later be used by police and government to determine your social credit score.

And maybe upsell you on a more expensive mouse trap.

They have fancy, innocent-sounding names for all that, but the bottom line is the company is losing money and – according to their own guidance – will continue to do so for the foreseeable future.

Fundamentals

A quick look under the hood reveals the following –

  1. CXM’s P/E is NON-EXISTENT, i.e., there are no earnings.
  2. Forward P/E is also NON-EXISTENT, i.e., company guidance says no positive earnings for at least another year.
  3. Dividend Yield is NON-EXISTENT.
  4. Price to Book is an alarmingly comical 5.35, and, as mentioned
  5. EPS for the last year FELL 267.60%, and what’s more…
  6. Next year are expected to remain negative due to an expected “non-GAAP operating loss of between $37 million and $41 million,” as per company guidance.
  7. We should also add that long time insiders, ICONIQ Strategic Partners, dumped their $140 million stake in the company at the top of the last retracement high (@$14.79), after which the stock retreated by some 35% (see chart, below).

Just a coincidence, of course.

A scolding is the least of what these folks deserve.

As the daily chart, below, shows, the company has known nothing but declines since it went public exactly a year ago.

It’s a cash furnace, as pyromaniac Elon Musk put it.

And the only question is whether investors will tire of spilling vast sums of money into the CXM dream-cloud while a recession hits, food shortages abound, inflation is soaring and the stock market slides…

You decide.

In the meantime, have a look here –

!משיב הרוח ומוריד הגשם

Will you be singing when it falls?

Many happy returns!

Matt McAbby

 

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