Sprout Social and Twilio Shares Are Soaring, What You Need To Know

What Happened?

A number of stocks jumped in the afternoon session after investors continued to buy the dip despite renewed geopolitical jitters as the U.S.-Iran ceasefire came under doubt following the seizure of the Iranian vessel Touska. 

While the fragile peace remained in question ahead of the ceasefire deadline later in the week, the software sector rebounded from a harsh "valuation reset" catalysed by AI fears. High-growth names like Datadog and ServiceNow led the charge as markets continued to decouple from Middle Eastern energy volatility. This resilience reflected a growing conviction that enterprise software remains a core structural winner, regardless of short-term macro turbulence.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Marketing Software company Sprout Social (NASDAQ:SPT) jumped 4%. Is now the time to buy Sprout Social? Access our full analysis report here, it’s free.
• Communications Platform company Twilio (NYSE:TWLO) jumped 3.3%. Is now the time to buy Twilio? Access our full analysis report here, it’s free.

Zooming In On Sprout Social (SPT)

Sprout Social’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 5.4% on the news that software stocks benefited from a "risk-on" market sentiment fueled by potential peace negotiations between the U.S. and Iran. 

As geopolitical tensions eased, investors returned to growth-heavy favorites like Microsoft and ServiceNow, which offer high-margin subscription revenue and clearer paths for integrating generative AI into enterprise workflows.

Sprout Social is down 44.2% since the beginning of the year, and at $5.78 per share, it is trading 76.4% below its 52-week high of $24.49 from May 2025. Investors who bought $1,000 worth of Sprout Social’s shares 5 years ago would now be looking at only $100.05.

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