SentinelOne Shares Plummet on Layoffs and Downgraded Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- Stock Price Plunge: SentinelOne's shares fell nearly 14% in premarket trading on Friday, primarily due to Wall Street's concerns regarding its guidance and layoffs, indicating a lack of confidence in the company's future growth prospects.
- Analyst Rating Adjustments: Citi analyst Fatima Boolani lowered her price target for SentinelOne from $18 to $17, citing the company's “restrained” revenue growth, which is expected to keep the stock price anchored, reflecting broader concerns about its fundamentals.
- Layoff Impact: SentinelOne announced it would cut approximately 8% of its full-time employees, expecting a one-time charge of about $25 million, including $15 million in cash, with the layoffs anticipated to be substantially completed by the second quarter of fiscal 2027, which may disrupt operations in the short term.
- Market Outlook Analysis: Despite challenges, Bank of America analyst Tal Liani upgraded SentinelOne from Neutral to Buy and raised the price target to $20, believing the company shows improved execution in new markets and customer segments, with potential for over 20% revenue growth in the future.
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Analyst Views on S
Wall Street analysts forecast S stock price to rise
21 Analyst Rating
13 Buy
8 Hold
0 Sell
Moderate Buy
Current: 18.020
Low
16.00
Averages
21.11
High
28.00
Current: 18.020
Low
16.00
Averages
21.11
High
28.00
About S
SentinelOne, Inc. is an artificial intelligence (AI)-powered cybersecurity provider. The Company’s Singularity Platform delivers AI-powered autonomous threat prevention, detection, response, and exposure management capabilities across an organization’s endpoints, cloud workloads, and identity credentials. The Company’s Singularity platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real time. Its distributed AI models run both locally on every endpoint and every cloud workload, as well as on its cloud platform. The Company through PingSafe Pte. Ltd. (PingSafe), which is a cloud native application protection platform (CNAPP) to bolster its cloud security product suite. By adding PingSafe’s CNAPP to its Cloud Workload Security (CWS), it provides enterprises with a comprehensive cloud security coverage that drives security, improved posture, and autonomous protection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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