Fundamental Analysis:
SentinelOne's fundamentals are strong given their revenue has only been increasing since their IPO. Their earnings are still negative for the time being, but only barely as they focus on growth.
Technical Analysis:
I believe this stock was oversold on mixed earnings and will rebound strongly, signaled by the RSI dipping below 30. The price currently sits at it's low support level of roughly $13. I plan to make a first purchase at this level, and if it dips lower I'll average down.
Also, it may look like SentinelOne's overall trend is down, but I believe this is only due to IPO'ing during the stock mania phase from the fed printing $6T in 2020.
SentinelOne's fundamentals are strong given their revenue has only been increasing since their IPO. Their earnings are still negative for the time being, but only barely as they focus on growth.
Technical Analysis:
I believe this stock was oversold on mixed earnings and will rebound strongly, signaled by the RSI dipping below 30. The price currently sits at it's low support level of roughly $13. I plan to make a first purchase at this level, and if it dips lower I'll average down.
Also, it may look like SentinelOne's overall trend is down, but I believe this is only due to IPO'ing during the stock mania phase from the fed printing $6T in 2020.
Trade active
Comment:
Update: I have closed my position at a price of $15.88 for a total return of about 20% in just over a week. I believe the market is rolling over and will hold all proceeds in cash and wait for a good opportunity.
Comment:
Sentinel is up 8% in after hours due to today's earnings report beating expectations.
Revenue: 149M actual vs 141M expected
EPS: -.08 act vs -.143 exp
Any earnings beat will usually result in a spike, but this report in particular is notable because S is now very close to being profitable for the first time, and would therefore move up the risk curve as being a more trusted company/stock to buy. For reference, soon after Tesla became profitable in 2019, it went on to rally into one of the biggest bubbles of the decade. I don't expect the same for S, but profitability is big when recession fears are still being whispered.
However, until S takes out it's local high at $21.96 it remains in a technical downtrend, but I'd expect further upside in the short term.
Revenue: 149M actual vs 141M expected
EPS: -.08 act vs -.143 exp
Any earnings beat will usually result in a spike, but this report in particular is notable because S is now very close to being profitable for the first time, and would therefore move up the risk curve as being a more trusted company/stock to buy. For reference, soon after Tesla became profitable in 2019, it went on to rally into one of the biggest bubbles of the decade. I don't expect the same for S, but profitability is big when recession fears are still being whispered.
However, until S takes out it's local high at $21.96 it remains in a technical downtrend, but I'd expect further upside in the short term.
I believe it'll continue much higher, but this jumped quick in just 7 trading days and we have CPI numbers tomorrow, which typically bring volatile markets, so I'd prefer to take some profits now.