Is The Economy Slowing Down? Maybe According to Flowers Spending Data

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Stocks jumped yesterday to recover from the previous day’s sell-off. January’s hotter-than-expected inflation data didn’t spook bulls from buying the dip. The S&P 500 was up by about 1%. Sam Stovall at CFRA believes that the market could pull back further from now on. But he anticipates it to be a brief breather before resuming the rally again. - “The market was overbought from a variety of readings, but is yet to be now in the oversold camp. There is still some vulnerability in the near term for some corrective action, in my opinion, but I certainly don’t think that we are headed for a decline in excess of 10%. I think it’s a more corrective pullback that is needed before we can continue our upward climb,” said Sam Stovall, chief investment strategist at CFRA. Sam Stovall, chief investment strategist at CFRA (Photo: Bloomberg) Wolfe Research’s macro strategist Rob Ginsberg agrees. He forecasts the market to move down to the 4,800 level -- about 3.4% decline from the current level. While inflation data may be responsible of the sell-off, he also said it “felt like the start of a much overdue digestion of gains.” - “The overbought condition which has lingered for over 2 months, may finally be coming in,” Ginsberg said. An economic data: We don’t know if this is a reliable economic data, but Barclays analyst Josh Grasso said Valentine’s Day flower spending was down by 16% month to date from the previous year. The data was based on credit card spending for all merchants categorized under “Florists supplies, Nursery Stock and Flowers.” Barclays said it was the slowest start to the season in post-pandemic years. Moreover, the bank said gym spending and aggregate spending also slowed down. - “Softer Valentine’s Data flowers spending also follows the softer gym spending that we identified last month and overall weakness in the aggregate spending in our consumer credit card data,” Grasso wrote in a Monday note. It is, of course, an unreliable data. The GDP data for the fourth quarter was phenomenal at a 4% growth rate. We will see whether the economy can stay strong throughout the next two quarters because it will play a big factor in corporate earnings growth and the Fed Reserve’s interest rate decision. The central bank is unlikely to cut rates if the economy grows robustly, but might cut rates if it slows down. At the same time, Wall Street doesn’t want it to slow down too much because it could hit corporate profits. A dark horse software stock to buy right now Today’s Stock Pick: Sprinklr, Inc ([CXM]( Once in a while, the software sector goes through a market correction. And each one is a big one. The reason is simple – software stocks trade at massive multiples, and any whiff of anxiety will have investors selling these stocks to protect their risks. But of course, the sell-off creates a ripe, once-in-a-decade opportunity to buy hot software stocks at a discount. That’s what you have here with Sprinklr. Some analysts are already calling Sprinklr the next Salesforce, and you’ll see why its solutions make a perfect sense. You see, customers are now using 30+ different channels to communicate: Texts, emails, Facebook, Instagram, phone, mails, Whatsapp, and so on. (Source: Sprinklr) And they expect companies to be available to engage in any of these platforms. You’ve heard about parents joining social media to get attention of their children. If the kid is on Snapchat all the time, then the best way to get their attention is to message them through Snapchat! It is more convenient for them to engage. But here’s the problem – how can a corporation streamline customer engagement in all these channels? There is no solution for it! Precisely, that’s where Sprinklr comes into the picture. Sprinklr’s platform, which it calls “unified customer experience management” or Unified-CXM, brings all data from customer’s contact with a company across channels into one place. So, the company can monitor customer sentiment and share data across customer-facing teams (such as sales, customer service, etc). Meaning? A customer service member can monitor a certain client that already interacted with the sales team. The data is there. So, the member doesn’t need to ask for information for the third time. Don’t we all hate repeating information to different teams at a company? That’s a clear pain point, and the solution is clear. The CEO articulated its solution beautifully: - “Your customers are moving across these traditional and modern channels in real time seamlessly, but your teams they can’t, asking customers to share the same information over and over again, which is filed away in some siloed system. You are always reacting, struggling to solve your customer’s most basic issues with software that was built 10 years, 20 years ago.” Sprinklr CEO Ragy Thomas (Photo: Chris Beier) That’s the beauty of Sprinklr’s business. Its problem is simple, and the market opportunity is virtually unlimited. Every business needs to improve customer service. The market has validated Sprinklr’s solution with a revenue growth of 21% year-over-year. The bulk of its revenue is subscription-based. And the time to buy is now. The revenue growth grew steadily in the last four quarters, with the recent quarter delivering a 22% growth. (Source: Sprinklr) Growing while maintaining margins: The biggest key to any revenue growth is maintaining margins. If your margins lose as you grow, it means you are not getting as much return on your investment. You’re losing more money even as you grow. But not Sprinklr. Gross margins increased to 83% and maintained it while growing revenue. (Source: Sprinklr) Logo customers: Sprinklr boasts one of the best rosters of clients – with over half of the Fortune 500 as its client. These names include Microsoft, Verizon, McDonald’s, and Netflix. They clearly see the benefit of Sprinklr, and the company now has a tremendous opportunity to expand relationships with these companies through cross-selling. (Source: Sprinklr) Cross-sell opportunities: Once Sprinklr penetrate an account, it can expand the revenue base through two avenues – expanding seats and cross-selling. First, when a team uses Sprinklr, it is likely for another department (such as sales or customer service) to join the subscription. Each person receives a seat, and the company would pay monthly fee per seat to Sprinklr. Second, Sprinklr have four key product categories. We won’t go over all of them. But the key thing is its artificial intelligence. It allows companies to visualize data they get from communication channels, and the A.I. will provide actionable insights. Once again, the CEO articulate these points beautifully: - “…we see is that, once one customer facing function comes onto Sprinklr, whether its brand, business unit or a team. And they put the foundation of governance and automation and analytics and AI that comes with an enterprise unified platform like ours. The other functions and other teams in other markets and other business units tend to follow and that’s when the true power of platform comes to life in a way that no point solution can ever demonstrate.” The CEO also said, “Enterprises don’t start with Unified-CXM, they arrive at.” In other words, they would start with one solution with Sprinklr at one department. Eventually, they will see the inevitable and unify customer experience with Sprinklr across all customer-facing departments. Bottom line: Genius is in simplicity, right? That’s what Sprinklr is. Its solution is clear and no-brainer. Companies face a huge problem of handling the explosion of communication channels, and they need to streamline all of them into one place. As the pioneer in this space, Sprinklr promises to become the next Salesforce. Its market cap is only $3.51 billion when its opportunity can easily be $30 billion or more. If you are looking for the next hot SaaS startup, look no further than Sprinklr. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](