Why SentinelOne Stock Is Dipping After Palo Alto Network Earnings
Portfolio Pulse from Erica Kollmann
SentinelOne, Inc. (NYSE:S) shares dropped following weak guidance from Palo Alto Networks, Inc. (NASDAQ:PANW) despite their own recent positive analyst upgrade. Palo Alto reported a 19% revenue increase in Q2 but projected lower-than-expected earnings for Q3. SentinelOne had been upgraded by B of A Securities from Neutral to Buy, with a price target increase from $26.50 to $35. SentinelOne's stock is down 11.5% at $25.79, but analysts have a positive outlook with an average 12-month price target of $28.18.
February 21, 2024 | 4:48 pm
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NEGATIVE IMPACT
Palo Alto Networks reported a 19% revenue increase in Q2 but issued weak Q3 guidance, leading to a decline in its stock price.
Palo Alto's weak Q3 guidance, despite beating Q2 earnings estimates, has negatively impacted its stock price. The guidance falls short of analyst expectations, leading to a negative short-term outlook for the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
SentinelOne's stock fell following Palo Alto's weak guidance, despite a recent upgrade and price target increase by B of A Securities.
SentinelOne's stock decline is directly linked to the broader market reaction to Palo Alto's weak guidance, affecting cybersecurity stocks. Despite positive analyst sentiment and recent upgrades, short-term impact is negative due to market sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90