Why SentinelOne Stock Soared 19% on Wednesday
Shares of SentinelOne (NYSE: S) surged 19.2% through 11 a.m. ET on Wednesday after a modest earnings beat sparked a frantic rush by Wall Street banks to raise price targets on the rising cybersecurity stock.
Heading into the third quarter of its fiscal 2024, analysts had limited hopes for SentinelOne, predicting the company would lose money ($0.08 per share) on sales of only $156.1 million. The analysts were right about SentinelOne losing money -- but wrong on the amount. Instead of $0.08 per share, SentinelOne's loss was less than half as bad as feared (only $0.03 per share), and its revenue of $164.2 million beat expectations by more than 5%.
SentinelOne's earnings beat didn't just surprise Wall Street -- it surprised management itself, with CEO Tomer Weingarten exclaiming that his company's artificial intelligence (AI)-based cybersecurity products drove better-than-expected "top and bottom line expectations ... industry-leading growth and margin improvement."
Source Fool.com
