Should you bet on SentinelOne stock rebound after its post-earnings decline?

Shares of Mountain View CA-based cybersecurity startup SentinelOne Inc. (NYSE:S) plunged by more than 7% during Tuesday’s extended trading session. The company announced its most recent quarterly results after markets closed, beating the consensus for analyst expectations on revenue and earnings.

SentinelOne posted fiscal third-quarter non-GAAP earnings per share of -$0.15, beating the average analyst estimate of -$0.18. On the other hand, its GAAP EPS of -$0.26 was in line with Street forecasts, while revenue for the quarter rocketed by 128.1% from the same quarter last year to $56.02 million, exceeding expectations by $6.44 million.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Although SentinelOne shares have declined by more than 33% since the 12th of November, the stock is still up more than 20% this year.

Is it too risky to buy SentinelOne stock?

From an investment perspective, SentinelOne shares trade at a steep price-sales ratio of 106.41. Therefore, the stock may not be an ideal option for value investors.

In addition, analysts expect SentinelOne earnings to plummet by 53.60% this year, before recovering slightly by 12.30% next year. As a result, growth investors could also opt for alternatives in the market.

Technically, SentinelOne shares seem to be trading within a descending channel formation in the intraday chart. However, the stock has recently bounced back, rallying to retest the trendline resistance.

As a result, SentinelOne is no longer in danger of slipping to oversold conditions. Therefore, investors could target technical pullback profits at about $45.45, or lower at $40.34, while $55.36 and $60.01 are crucial resistance zones.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

1. Etoro, trusted by over 13m users worldwide. Register here >
2. bitFlyer, simple, easy to use and regulated. Register here >