To The Moon

$SentinelOne, Inc(S)$ will be reporting results on 30 May after market close.

During its last quarter, SentinelOne beat analysts' revenue expectations by 2.8%, reporting revenues of $174.2 million, up 38.1% year on year. It was a decent quarter for the company, with an impressive beat of analysts' billings estimates.

Their management forecasting growth to slow. It added 73 enterprise customers paying more than $100,000 annually to reach a total of 1,133. If we looked at SentinelOne's peers in the cybersecurity segment, some have already reported their Q1 results, giving us a hint as to what we can expect.

$Okta Inc.(OKTA)$ identity verification technology provider, another cybersecurity company, their stock rise 2.2% to $98.50 after the bell. They have also provide a pretty positive outlook of adjusted EPS in 2025 of $2.35 to $2.40, higher than analysts' estimate of $2.32/shr, according to LSEG.

Their Q1 profit of 65 cents is higher that estimates of 55 cents. Their profit beat is being helped by a 20% growth in subscription revenue.

More M&A Ahead. Focus On Your Competitive Advantage

There is something we might want to take a leaf from Okta CEO Todd McKinnon, he believes cyber will see more M&A ahead, but warns of a danger in any one company covering all cyber needs.

I do agree with him when he say leading cyber vendors are trying to build platforms that can do everything at a time when the pipeline of innovation in cyber is coming from companies that are built to be acquired.

If we were to look at how SentinelOne is performing and also its business model, I would think SentinelOne should focus on their core business, Cybersecurity, make themselves to complement with AI developers and platform. They should focus on their threat-hunting platform seamlessly.

Why SentinelOne Is For Long Term Like C3.ai

If we looked at how $C3.ai, Inc.(AI)$ came out with a quarterly loss of $0.11 per share versus consensus Estimate of a loss of $0.31. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 64.52%. A quarter ago, it was expected that this company would post a loss of $0.28 per share when it actually produced a loss of $0.13, delivering a surprise of 53.57%.

This should not come as a surprise as C3.ai have been growing their revenue pretty consistently. So how would we SentinelOne then?

SentinelOne Correlate With Okta and C3.ai?

If we looked at the 2 stocks which are in Ai and cybersecurity which release their earnings release after market yesterday, we could see SentinelOne actually can correlate to them.

I suspect because SentinelOne is a cybersecurity company which are also involved quite heavily in AI, this strategy should give SentinelOne an edge, but we need to understand that their investment expenses would be high.

So can their sales and revenue make up of this expenditure?

SentinelOne Investors Selling Pressure

If we looked at how SentinelOne have been trading, since mid-March, there have been so much selling strength being formed since its last earnings, this clearly show that investors are not comfortable with this stock.

So we need to see a move to demand (buying) since we saw the selling strength decreasing, but will it happen? and is there any opportunities for BUY signal?

SentinelOne Recent Sell Signal Might Not Stop

If we looked at how SentinelOne BUY and SELL signal appear from KDJ, it looks like the recent BUY signal appear on 22 April 2024, almost one month later, we saw a SELL signal appear on 20 May 2024.

There is no potential BUY signal as we moved closer to SentinelOne earnings, but will we see more selling as investors might not be confident on its earnings?

Summary

SentinelOne stock price need investors confidence to come back, as their last quarter revenue expectations beat did not do any favour to its stock price. We need the management to show that their growth could grow.

I am expecting the management to share more on what they planned to do to increase the growth since AI demand have been growing tremendously since the last quarter earnings.

Appreciate if you could share your thoughts in the comment section whether you think SentinelOne could provide a more positive forecast of its growth as AI demand is growing.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.