Software is rapidly reducing operating expenses for businesses. Companies bringing it to life have been rewarded with high valuation multiples that make fundraising easier,
but they have weighed on the returns lately as the industry has pulled back by 12.3% over the past six months. This drop is a noticeable divergence from the S&P 500’s 5.5% return.
A number of stocks fell in the afternoon session after markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut.
A number of stocks jumped in the afternoon session after the SaaS sector continued to rally as favorable inflation data bolstered hopes for a Federal Reserve interest rate cut. This optimism was largely driven by a benign July Consumer Price Index (CPI) report, which solidified investor expectations for a Federal Reserve interest rate cut. Following the release of the inflation data, which showed a year-over-year increase of 2.7%, the probability of a rate cut in September surged to over 96%. Lower interest rates are typically beneficial for growth-oriented technology stocks, as they can reduce borrowing costs and increase the present value of future earnings. Adding to the positive sentiment was a 90-day delay in the imposition of higher tariffs on Chinese goods, which reduced trade-related uncertainty for the technology sector.
Shares of cyber security company SentinelOne (NYSE:S)
jumped 3% in the afternoon session after analyst optimism ahead of its upcoming earnings report and a series of positive strategic developments. Analysts at Cantor Fitzgerald reiterated an Overweight rating and a $24 price target ahead of the company's earnings, pointing to solid growth and platform adoption. This view was echoed by Rosenblatt Securities, which initiated coverage with a Buy rating. Beyond Wall Street's confidence, SentinelOne has been active strategically, announcing the planned acquisition of AI security startup Prompt Security to enhance its AI capabilities. The company also expanded its ecosystem through an integration with GoTo's LogMeIn Resolve and by making its solutions available in the AWS Marketplace, improving access for customers and signaling strong business momentum.
Shareholders of SentinelOne would probably like to forget the past six months even happened. The stock dropped 34.5% and now trades at $15.85. This may have investors wondering how to approach the situation.
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Jim Cramer recommends buying Boeing (BA) after BofA raises price target to $270. Steer away from Lamb Weston (LW). SentinelOne (S) is just hype. KeyCorp (KEY) is a buy.
Shares of cyber security company SentinelOne (NYSE:S)
jumped 3.8% in the after-market session after an analyst at Guggenheim upgraded the stock's rating.
Shares of cyber security company SentinelOne (NYSE:S)
jumped 9.4% in the afternoon session after reports from Israeli media outlets suggested the cybersecurity firm was in advanced talks to be acquired by industry giant Palo Alto Networks.
Shares of cybersecurity firm SentinelOne are trading higher Monday. The upward momentum appears to be driven by investor optimism following a series of positive developments last week.
Shares of cyber security company SentinelOne (NYSE:S)
jumped 3% in the morning session after Rosenblatt Securities initiated coverage with a "Buy" rating and a $24 price target.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
