SentinelOne (S) Fundamental & Technical Analysis


S

Chart done on daily timeframe. SentinelOne’s stock has had a tough quarter as the company attempts to recover from last earnings. The stock lost more than 40% after the report, but it has since then climbed slowly. The earnings ahead are expected to test the strength of the move from the lows. Although revenue grew in the last seven quarters, the company has either declined, or stayed flat in the last 12 months. Its decline is justified since it was highly overvalued, but if we’re using the 10x model, it is now in an attractive range, especially if they upkeep the revenue growth trend. Net income and cash flow are in the negative so make sure to keep that in mind when taking on the stock. Revenue and balance sheet are healthy, especially for a fairly young company in a highly competitive field. These earnings may finally push the stock since it is now at an attractive valuation, but it depends on how revenue growth comes in. Revenue growth was above 100% quarter over quarter in 2022, but since then dropped to 92% (Q4) and 70%. If the trend continues down then it may be a discouraging signal that interest rates and a slower economy is hurting their growth.