We recently compiled a list of the 12 Best Tech Stocks to Buy Right Now Under $10. In this article, we are going to take a look at where Sprinklr Inc. (NYSE:CXM) stands against the other tech stocks under $10.
Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends.
In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
Our Methodology
To shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey’s database.
Note: all pricing data is as of market close on February 6.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer working on a monitor in a modern office.
Sprinklr Inc. (NYSE:CXM)
Current Market Price: $8.88; Upside Potential: 13%
Number of hedge funds: 24
Sprinklr Inc. engages in customer experience management (CXM), providing an AI-powered unified-CXM platform for businesses to handle customer interactions across various channels, including social media, messaging, and email. The platform integrates data analytics, artificial intelligence, and machine learning to enhance customer engagement, streamline marketing efforts, and improve overall brand experience. Sprinklr serves a diverse clientele, including large enterprises and mid-sized businesses across multiple industries.
As per its Q3 2025 (FY ending January 2025) earnings results, the company’s total revenue grew 8% year-over-year (YoY) to $200.7 million. The subscription business drove the revenue, reaching $180.6 million, a 6% YoY increase, making up 90% of total revenue. Customers with over $1.0 million in subscription revenue rose 20% YoY to 147 in the quarter. The company’s order backlog also remains strong, with the remaining performance obligation (RPO; total contracted revenue but not yet recognized) standing at $906.3 million (+2.2% versus the last quarter).
While the company is experiencing slower revenue growth, its total addressable market remains large at $60 billion. Sprinklr Inc. (NYSE:CXM) expanded its customer base to over 1,800 clients in Q3, indicating good strategy execution. In our view, the company is well-positioned to capitalize on the growing demand for integrated customer experience solutions as businesses increasingly recognize the importance of delivering personalized and consistent experiences.
Overall CXM ranks 8th on our list of the best tech stocks to buy under $10. While we acknowledge the potential of CXM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CXM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
